Aggregate spending equals
A) C + I + G - X - IM
B) C - I + G + X - IM
C) C + I - G + X - IM
D) C + I + G + X - IM
E) C + I + G + X + IM

Question

Quizplus · Accepted Answer

Aggregate spending is the sum of consumption (C), investment (I), government spending (G), and net exports (exports - imports, or X - IM). Therefore, the correct formula for aggregate spending is C + I + G + X - IM, which is represented by choice D.

Aggregate Spending Equals