Essay
This question has three parts.
(a) Consumption is $4.5 billion, investment is $3.9 billion, government expenditure is $4.2 billion, and net exports are $3 billion. What is aggregate expenditure?
(b) Consumption is $30 billion, investment is $27.9 billion, government expenditure is $23 billion, exports are $17 billion, and imports are $23.5 billion. What is aggregate expenditure?
(c) Consumption is $42 billion, investment is $39 billion, government expenditure is $36 billion, and the economy has a trade deficit of 25 billion. If the economy is experiencing macroeconomic equilibrium, what is the level of real GDP?
Correct Answer:
Verified
Correct Answer:
Verified
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