Respuesta :

Income must equal expenditure because for an economy because :

  1. Every transaction has a buyer and seller.
  2. Every dollar of spending by some buyer is a dollar of income for some seller.

What is Aggregate income?

Aggregate income is a form of GDP whereby income is equal to Consumption expenditure including net profits. It refers to the value of all income that suppliers of production factors receives over a specified period.

In an economy, income must equal expenditure because for every transaction, there must be a buyer and a seller. This is because every economy must have this cycle so that there will be balanced receipts and payment.

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