Question

Aggregate income in an economy in 2017 is ​$100 billion. Saving is ​$30 billion and imports are ​$35 billion. What is aggregate expenditure in the economy in​ 2017?

Answer 1

Answer: $100 billion

Step-by-step explanation:

In Economics, Aggregate Income is assumed to be the same as Aggregate Expenditure. The assumption behind this is that every dollar spent is a dollar in income from someone else so every income is just a dollar that will be spent.

With that logic in a country that has Aggregate income of $100 billion, the Aggregate Expenditure will be $100 billion as well.