GDP can measure either the total income of everyone in the economy or the total expenditure on the economy's output of goods and services, but GDP cannot measure both at the same time.

Question

Quizplus · Accepted Answer

GDP measures both the total income of everyone in the economy and the total expenditure on the economy's output of goods and services simultaneously, as these two measures should, in theory, be equal due to the circular flow of income.

GDP Can Measure Either the Total Income of Everyone in the Economy