Consumption spending is $16 billion, planned investment spending is $4 billion, unplanned investment spending is $2 billion, government purchases are $6 billion, and net export spending is $1 billion.What is aggregate expenditure?
A)$22 billion
B)$26 billion
C)$23 billion
D)$27 billion
E)$29 billion

Question

Quizplus · Accepted Answer

Aggregate expenditure is calculated as the sum of consumption spending, planned investment spending, government purchases, and net export spending. Therefore, it is $16 billion (consumption) + $4 billion (planned investment) + $6 billion (government purchases) + $1 billion (net exports) = $27 billion. Unplanned investment spending is not included in aggregate expenditure.

Consumption Spending Is $16 Billion, Planned Investment Spending Is $4