Question

If consumption expenditures are $200 billion, total investment is $50 billion, government purchases are $40 billion, exports are $45 billion, imports are $40 billion, aggregate expenditures must be:

Answer 1

Based on the information given the aggregate expenditures must be: $295 billion.

Using this formula

Aggregate expenditure= Consumption expenditures+ Total investment + Exports

Where:

Consumption expenditures=$200 billion

Total investment= $50 billion

Exports=$45 billion

Let plug in the formula

Aggregate expenditure=$200 billion+$50 billion+$45 billion

Aggregate expenditure=$295 billion

Inconclusion the aggregate expenditures must be: $295 billion.

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