In an economy made up of homes and businesses, the only way for households to spend their money is on the goods and services supplied by the businesses. The factors of production spend their earnings on goods and services. As a result, the profit will be returned to the producers in the form of sales revenue. As a result, there is no difference between the amount that firms transfer in the form of factor payments and the amount that households spend on consumption. Year after year, the same thing happens. There is a disparity between aggregate consumer spending and aggregate factor payments if there has been any fault or fissure in the form of savings, imports, or taxes. Households will spend less than their actual earnings if there is some leakage. As a result, enterprises will receive less money in the form of revenue, lowering production and employment. Every subsequent round will repeat the process, resulting in lower levels of production and employment. As a result, for the economy to run smoothly, there must be equality between aggregate consumption expenditure and aggregate factor payments.