Enter the sum of the household consumption, total investments, government spending, and net exports into the calculator to determine the aggregate expenditure.
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Aggregate Expenditure Formula
The following formula can be used to calculate the aggregate expenditure of an economy.
E = NX + G + I + C
- Where E is the aggregate expenditure
- NX is the net exports
- G is the government spending
- I is the total investments
- C is the sum of the household consumption
To calculate the aggregate expenditure, sum the net exports, government spending, investments, and household consumption together.
Aggregate Expenditure Definition
Aggregate expenditure is defined as a financial measure of the value of all current goods and services in an economy.
Aggregate Expenditure Example
How to calculate an aggregate expenditure?
- First, determine the net exports.
Calculate the total net exports.
- Next, determine the government spending.
Measure the total government spending.
- Next, determine the total investments.
Measure the total value of investments.
- Next, determine the household consumption.
Measure the total sum of household consumption.
- Finally, calculate the aggregate expenditure.
Calculate the aggregate expenditure using the formula above.
Aggregate expenditure is a financial measure of the current value of all goods and services in a given economy.
Aggregate expenditures can be used to calculate how well an economy is doing at any present moment.