Question

Which equality is a National Income Accounting identity?

Options

• Actual Output (Ex-post) = actual consumption + Actual Investment

• \[Y_d=Y+T\]

• Planned output = planned aggregate demand at every level of output

• \[AD=C+T\]

Answer 1

The National Income Accounting identity states that Actual Output (Ex-post) equals actual consumption plus Actual Investment. This differs from the planned equilibrium equation.