In a simple economy with only businesses and households, suppose that the sum total of all the goods and services produced during the relevant periodlong dashpairs of shoes, candy bars, digital devices, etc. all summed togetherlong dashis 460 trillion units. the total dollar value of this flow of output is $45 trillion. the total amount of factors of productionlong dashlabor, land, capital, entrepreneurship, all summed togetherlong dashis 0.7 billion units. what is the flow of incomelong dashthat is, the sum of wages, rents, interest, and profits?
the flow of incomelong dashthe sum of wages, rents, interest and profitslong dashis

$45 trillion.

Explain:

The balance between total revenue and the dollar amount of total output arises from the role performed by profit. Profit works as a leftover from cumulative business acquisitions after all other expenses such as long dash wages or dash labor, rents, interests have to be paid. If the dollar value of total output is $500, and the total expenses for producing the output is $450, there is an economic profit of $50. Hence, total income must meet the value of the total output. Therefore, I can say that if one group of people spend, another combination of individuals will realize a profit.

Explanation:

answer; microeconomics;

answer; situational irony;