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The total expenditure on goods and services in a country must be the same as the total income earned from selling goods and services because:

The total expenditure on goods and services in a country must be the same as the total income earned from selling goods and services because:

  • net exports in an economy is usually zero
  • the sum of consumption spending and savings is zero
  • total investment in an economy always equals total savings
  • one sector's expenditures are another sector's income
  • the government budget has to balance

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