Consumption is $51 billion, investment is $54 billion, government expenditure is $46 billion, and the economy has a trade surplus of $8 billion. What is aggregate expenditure?
A)$159 billion
B)$151 billion
C)$143 billion
D)$150 billion

Question

Quizplus · Accepted Answer

Aggregate expenditure is the total amount spent on the national level in an economy and is calculated by adding consumption, investment, government expenditure, and net exports (exports minus imports). In this case, it is $51 billion (consumption) + $54 billion (investment) + $46 billion (government expenditure) + $8 billion (trade surplus) = $159 billion.

Consumption Is $51 Billion, Investment Is $54 Billion, Government Expenditure