Aggregate expenditure is $200. Consumers pay $70 in net taxes and spend $80 on products and services. Disposable income is $50.

Question

Quizplus · Accepted Answer

The given information does not add up correctly. If aggregate expenditure is $200 and consumers spend $80 on products and services, there must be an additional $120 of spending from other sources (such as government or business investment). Additionally, if disposable income is $50 and net taxes are $70, this would imply negative disposable income which is not possible.

Aggregate Expenditure Is $200