If planned aggregate expenditures are $150 billion, consumption is $50 billion, investment is $30 billion, government spending is $40 billion, there is a

Question

Quizplus · Accepted Answer

Planned aggregate expenditures are the total of consumption, investment, government spending, and net exports. Here, they equal $150 billion. Given consumption ($50 billion), investment ($30 billion), and government spending ($40 billion), these add up to $120 billion. The difference between the planned aggregate expenditures ($150 billion) and the sum of consumption, investment, and government spending ($120 billion) must be the net exports, which is $30 billion. Since it's a positive number, it indicates a trade surplus, not a deficit or balance.

If Planned Aggregate Expenditures Are $150 Billion, Consumption Is $50