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 ($) ## How to Calculate Aggregate Cost? The following example problems outline how to calculate Aggregate Cost. Example Problem #1: 1. First, determine the total economic income ($). The total economic income ($) is given as 5,000,000. 2. Next, determine the government income and subsidies ($). The government income and subsidies ($) is provided as 1,000,000. 3. Finally, calculate the Aggregate Cost using the equation above: AC = EI – GI The values given above are inserted into the equation below: AC = 5,000,000 – 1,000,000 = 4,000,000.00 ($)

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 (\$)