Principles of Macroeconomics / Unit 3 MAC 0213 short lesson, about 20 seconds
Income Equals Output
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The idea
Everything spent becomes someone's income, so total output equals total income. GDP can be measured by adding spending or by adding wages, rent, interest and profit.
In practice
Every dollar paid for a box of cereal becomes income to someone.
Where people slip
The two estimates come from different surveys, so they never match exactly, and the gap is reported as a statistical discrepancy.
Your place on the trail
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