When the aggregate revenue received by the firms is paid out to the factors of production, it takes the form of _____.

Aggregate Income

The correct answer is Option (3) → Aggregate Income

When the income is being spent on the goods and services produced by the firms, it takes the form of aggregate expenditure received by the firms. Since the value of expenditure must be equal to the value of goods and services, we can equivalently measure the aggregate income by “calculating the aggregate value of goods and services produced by the firms”. When the aggregate revenue received by the firms is paid out to the factors of production it takes the form of aggregate income.