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A measure of national expenditure at market prices does not reflect the true value of factor costs because it includes
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Question 29:
In a 4-sector economy, equilibrium occurs when total injections equal total leakages. Injections are Investment (I), Government spending (G), and Exports (X). Leakages are Saving (S), Taxes (T), and Imports (M).
Therefore, the equilibrium condition is .
The correct option is B.
The condition that holds for national income to be in equilibrium is .
Question 30:
Step 1: Calculate the change in income ().
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