spending in macro land decreased by 20, the income-expenditure equilibrium is 50 GDP = No government or taxes
Consumption of goods and services: The income-expenditure model shows that personal income contributes to market consumption. For example, high-income individuals and businesses spend more money on goods and services than low-income individuals.
According to the expenditure approach, national income can be expressed as National Income = C (Household Consumption) + G (Government Expenditure) + I (Capital Investment) + NX (Net Exports).
The National Revenue and Expenditure Account capture the value of GDP in two terms: income from production and final expenditure on the goods and services produced. In real (that is, price-adjusted) terms, GDP measures the amount of economic activity over some time.
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