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The Expenditure Method measures national income from which side of the economy?

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Question

The Expenditure Method measures national income from which side of the economy?

Options

  • Supply side

  • Demand (expenditure) side

  • Financial-assets side

  • Taxation side

MCQ
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Solution

The Expenditure Method measures national income from the demand or expenditure side. It totals spending on final goods and services in the economy.

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