Question

"Suppose profits are less than zero. From this it follows that:

A. aggregate income exceeds aggregate production.
B.the sum of employee compensation, rents, and interest exceeds aggregate income.
C. aggregate income is less than the value of final output.
D. the sum of employee compensation, rents, and interest equals aggregate income."

Answer 1

B.the sum of employee compensation, rents, and interest exceeds aggregate income.

Step-by-step explanation:

Aggregate income is the total amount earned by firms and individuals in the economy before adjusting for taxes, interest, and inflation. It is the income earned by individuals and companies in the economy.

Calculating aggregate income involves considering employee incomes before taxes, business incomes, rental income, corporate income, interest income, and government income.

Profits will be zero if aggregate income less than the sum he sum of employee compensation, rents, and interest. For the economy to experience profits, aggregate income must exceed the total of employee compensation, rents, and interest exceeds