Multiple choice

National income is the same as

  1. national product
  2. national expenditure
  3. national transfer

  1. 1 and 2

  2. 2 and 3

  3. 1 and 3

  4. All of the above
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A Correct answer
Explanation

The amount received as national income is identical to the amount spent as national expenditure, which is also identical to what is produced as national output. Throughout macroeconomics, the terms income, output and expenditure are interchangeable.

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