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Consumption is $1.2 trillion, government expenditure is $0.75 trillion, investment is $0.8 trillion, and net exports amount to $0.4 trillion. What is aggregate expenditure in this economy?

A. $2.35 trillion
B. $1.55 trillion
C. $2.75 trillion
D. $3.15 trillion

Answer :

Final answer:

The aggregate expenditure in the economy is $3.15 trillion, hence the correct answer is d. $3.15 trillion.

Explanation:

To calculate aggregate expenditure in an economy, you need to sum up consumption, government expenditure, investment, and net exports. Here is the steps calculation given the figures provided:

  • Consumption: $1.2 trillion
  • Government Expenditure: $0.75 trillion
  • Investment: $0.8 trillion
  • Net Exports: $0.4 trillion

By adding up these numbers (1.2 + 0.75 + 0.8 + 0.4),

you get a total aggregate expenditure of $3.15 trillion.

Therefore, the direct answer to the question is option d. $3.15 trillion.

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Rewritten by : Jeany