Consider the following statement related to Aggregate Income

(A) Aggregate revenue received by the firms is paid out to the factors of production it is considered as aggregate income.
(B) Aggregate Income can be calculated by calculating the aggregate value of goods and services produced by the firms.
(C) Income is being spent on the goods and services produced by the firms. It takes the form of aggregate expenditure received by firms.
(D) Aggregate Income can not only be calculated through aggregate expenditure. There are other methods that exist.

Which of the following combination of statements best explains the concept of Aggregate Income?

(A), (B), (C) and (D)

The correct answer is Option (3) → (A), (B), (C) and (D)

(A) Aggregate revenue received by the firms is paid out to the factors of production; it is considered as aggregate income. True. This reflects the income method of measuring national income — firms’ revenues become factor payments (wages, rent, interest, profit).

(B) Aggregate Income can be calculated by calculating the aggregate value of goods and services produced by the firms. True. This represents the product (output) method — value of total production equals aggregate income.

(C) Income is being spent on the goods and services produced by the firms. It takes the form of aggregate expenditure received by firms. True. This connects the expenditure method — total expenditure equals income earned.

(D) Aggregate Income can not only be calculated through aggregate expenditure. There are other methods that exist.True. Yes — apart from the expenditure method, income and output methods also exist.