: Prescribed book PG 277 Although production, income and spending all occur simultaneously, it is useful to consider these three flows in sequence, starting with production. Production creates income which is then used to purchase the products that were produced in the first place. By definition, income is always equal to production but there is no guarantee that all income will be spent. Spending may be equal to, greater than or less than income. 2. 4 Reference: Prescribed book PG 318 As...