$$\begin{array} { c c c c }
\hline \begin{array} { c }
\text { Real GDP } \
( \$ )
\end{array} & \begin{array} { c }
\text { Consumption } \
( \$ )
\end{array} & \begin{array} { c }
\text { Planned } \
\text { investment } \
( \$ )
\end{array} & \begin{array} { c }
\text { Government } \
\text { purchases } \
( \$ )
\end{array} \
\hline 1,800 & 1,540 & 100 & 200 \
1,900 & 1,620 & 100 & 200 \
2,000 & 1,700 & 100 & 200 \
2,100 & 1,780 & 100 & 200 \
2,200 & 1,860 & 100 & 200 \
2,300 & 1,940 & 100 & 200 \
\hline
\end{array}$$
-Refer to the data in the exhibit.What is aggregate expenditure?

Question

$$\begin{array} { c c c c } 
\hline \begin{array} { c } 
\text { Real GDP } \
( \$ )
\end{array} & \begin{array} { c } 
\text { Consumption } \
( \$ )
\end{array} & \begin{array} { c } 
\text { Planned } \
\text { investment } \
( \$ )
\end{array} & \begin{array} { c } 
\text { Government } \
\text { purchases } \
( \$ )
\end{array} \
\hline 1,800 & 1,540 & 100 & 200 \
1,900 & 1,620 & 100 & 200 \
2,000 & 1,700 & 100 & 200 \
2,100 & 1,780 & 100 & 200 \
2,200 & 1,860 & 100 & 200 \
2,300 & 1,940 & 100 & 200 \
\hline
\end{array}$$
-Refer to the data in the exhibit.What is aggregate expenditure?

Quizplus · Accepted Answer

Aggregate expenditure is the sum of consumption, planned investment, and government purchases at each level of real GDP. So, at $1,800, aggregate expenditure would be $1,840 ($1,540 + $100 + $200), at $1,900 it would be $1,920 ($1,620 + $100 + $200), and so on. The highest value of aggregate expenditure is $2,000 at a real GDP of $2,000. Therefore, the best choice is C.

-Refer to the Data in the Exhibit