Use the figure below to answer the following questions.

Figure 20.1.1
-Refer to Figure 20.1.1, which shows the circular flow of expenditure and income for Venus. During 2014, A was $100, B was $50, C was $30 and D was $10. How much is aggregate expenditure?

Question

Use the figure below to answer the following questions.
  
Figure 20.1.1
-Refer to Figure 20.1.1, which shows the circular flow of expenditure and income for Venus. During 2014, A was $100, B was $50, C was $30 and D was $10. How much is aggregate expenditure?

Quizplus · Accepted Answer

Aggregate expenditure is the sum of all spending in an economy, which in this case is the sum of all the arrows pointing from households to firms (A, B, C, and D). Therefore, aggregate expenditure during 2014 was $100+$50+$30+$10= $190. None of the answer choices match this value except for choice D, which is the closest at $100. Therefore, D is the best choice.

Use the Figure Below to Answer the Following Questions