- Thursday, November 6, 2008, 13:56
- Economics
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National Accounts Identity
Recall that the concept of the circular flow of income makes it clear that, in a given period of time, the amount of expenditure in the economy must equal the value of output sold in return which then must equal the incomes paid to the owners of the factors which were used to produce the output. This identity between expenditure, output and income ...
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