Question

Consumption spending is​ $22 million, planned investment spending is​ $7 million, actual investment spending is​ $7 million, government purchases are​ $9 million, and net export spending is​ $3 million. Based on this​ information, which of the following is​ true?

A. Aggregate expenditure is equal to GDP.
B. Aggregate expenditure is less than GDP.
C. Aggregate expenditure is greater than GDP.
D. There was an unplanned change in inventories.

Answer 1

Aggregate expenditure is equal to GDP.

Step-by-step explanation:

Aggregate expenditure = Consumption + investment + Government Spending + Net Export

= $22 + $7 + $9 + $3 = $41 million

ĢDP = $22 + $7 + $9 + $3 = $41 million

Unplanned changes in inventory = Actual inventory - planned inventory

$7 -$7 million =$0