Enter the sum of the household consumption, total investments, government spending, and net exports into the calculator to determine the aggregate expenditure.

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?

  1. First, determine the net exports.

    Calculate the total net exports.

  2. Next, determine the government spending.

    Measure the total government spending.

  3. Next, determine the total investments.

    Measure the total value of investments.

  4. Next, determine the household consumption.

    Measure the total sum of household consumption.

  5. Finally, calculate the aggregate expenditure.

    Calculate the aggregate expenditure using the formula above.

FAQ

What is an aggregate expenditure?

Aggregate expenditure is a financial measure of the current value of all goods and services in a given economy.

What is aggregate expenditure used for?

Aggregate expenditures can be used to calculate how well an economy is doing at any present moment.