The following data relates to a national economy (all figures in $billions):

-Refer to the table above to answer this question.What is the level of aggregate expenditures when income equals $2,000?
A)$1,800
B)$2,000
C)$2,200
D)$2,400
E)Cannot be determined from the information.

Question

The following data relates to a national economy (all figures in $billions):
 
-Refer to the table above to answer this question.What is the level of aggregate expenditures when income equals $2,000?
A)$1,800 
B)$2,000 
C)$2,200 
D)$2,400 
E)Cannot be determined from the information.

Quizplus · Accepted Answer

Aggregate expenditures are the sum of consumption, investment, government spending, and net exports. From the table, when income equals $2,000, consumption is $1,700, investment is $150, government spending is $150, and net exports are $50 (the exports and imports cancel each other out). Therefore, aggregate expenditures are $1,700 + $150 + $150 + $50 = $2,200. Therefore, the correct answer is C.

The Following Data Relates to a National Economy (All Figures