Consumption is $45 billion, investment is $40 billion, government expenditure is $38 billion, exports are $20 billion, and imports are $25 billion. Aggregate expenditure is:
A)$118 billion.
B)$123 billion.
C)$128 billion.
D)$143 billion.

Question

Quizplus · Accepted Answer

Aggregate expenditure is the sum of consumption, investment, government expenditure, and net exports (exports minus imports). In this case, aggregate expenditure is $45 billion + $40 billion + $38 billion + ($20 billion - $25 billion) = $118 billion.

Consumption Is $45 Billion, Investment Is $40 Billion, Government Expenditure