Consumption spending is $5 million,planned investment spending is $8 million,unplanned investment spending is $2 million,government purchases are $10 million,and net export spending is $2 million.What is aggregate expenditure?
A)$15 million
B)$23 million
C)$25 million
D)$27 million

Question

Quizplus · Accepted Answer

Aggregate expenditure is the sum of consumption spending, planned investment spending, unplanned investment spending, government purchases, and net export spending.

Aggregate expenditure = consumption spending + planned investment spending + unplanned investment spending + government purchases + net export spending

= $5 million + $8 million + $2 million + $10 million + $2 million

= $27 million

Therefore, the best choice is C, which is $25 million.

Consumption Spending Is $5 Million,planned Investment Spending Is $8 Million,unplanned