Question

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

Answer 1

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