In: Economics
Table A shows gross domestic product (GDP), disposable income (DY), consumer spending (C), and planned investment spending (IPlanned) in an economy. Assume there is no government or foreign sector in this economy.
Table A
GDP | DY | C | IPlanned | AE | IUnplanned |
1000 | 1000 | 1400 | 300 | ||
1500 | 1500 | 1775 | 300 | ||
2000 | 2000 | 2150 | 300 | A | |
2500 | 2500 | 2525 | 300 | B | |
3000 | 3000 | 2900 | 300 | ||
3500 | 3500 | 3275 | 300 | ||
3800 | 3800 | 3500 | 300 | ||
4200 | 4200 | 3800 | 300 |
Refer to Table A and fill the blank “A” by calculating planned aggregate spending (AE).
1,700 |
||
4,100 |
||
2,825 |
||
2,450 |
Ans- The correct answer is 2450.
Solution:-
As we know:-
Aggregate expenditure=Consumption+investment (Planned)
Aggregate expenditure (point A)=2150+300
Aggregate expenditure (point A)=2450