Enter the total economic income ($) and the government income and subsidies ($) into the Aggregate Cost Calculator. The calculator will evaluate and display the Aggregate Cost.
Aggregate Cost Formula
The following formula is used to calculate the Aggregate Cost.
AC = EI – GI
- Where AC is the Aggregate Cost ($)
- EI is the total economic income ($)
- GI is the government income and subsidies ($)
How to Calculate Aggregate Cost?
The following example problems outline how to calculate Aggregate Cost.
Example Problem #1:
- First, determine the total economic income ($). The total economic income ($) is given as 5,000,000.
- Next, determine the government income and subsidies ($). The government income and subsidies ($) is provided as 1,000,000.
- Finally, calculate the Aggregate Cost using the equation above:
AC = EI – GI
The values given above are inserted into the equation below:
AC = 5,000,000 – 1,000,000 = 4,000,000.00 ($)
Example Problem #2:
The variables needed for this problem are provided below:
total economic income ($) = 6,000,000
government income and subsidies ($) = 2,000,000
Entering these values and solving gives:
AC = EI – GI = 4,000,000.00 ($)
