Question

updates now or try tonight? o Macroeconomics Use the table below to answer the following questions. Table 4.2.1 Data From Eastland Item Dollars 800 250 250 Wages, salaries, and supplementary labour income Other factor incomes Government expenditures on goods and services Depreciation Investment Personal income taxes net of transfer payments Indirect taxes Net exports Consumption expenditure 240 400 140 600 Refer to Table 4.2.1. What is aggregate income in Eastland? Select one: A. $1,280 © B. $1,360 C. $1,050 D. $1,120 E. $1,350 age MacBook Air

Answer 1

Aggregate income in an economy is always equal to the aggregate expenditure.

Calculate the aggregate expenditure in the Eastland -

Aggregate expenditure = Consumption expenditure + Government expenditures on goods and services + Investment + Net exports

Aggregate expenditure = $600 + $250 + $400 + $100

Aggregate expenditure = $1,350

The aggregate expenditure in the Eastland is $1,350.

As stated above, aggregate expenditure is always equal to the aggregate income.

Therefore,

The aggregate income in the Eastland is $1,350.

Hence, the correct answer is the option (E).