Aggregate Expenditure Calculator

Calculate Aggregate Expenditure (E)







Formula

The formula to calculate Aggregate Expenditure (E) is:

\[ E = NX + G + I + C \]

Where:

What is Aggregate Expenditure?

Aggregate Expenditure is a financial measure of the total value of all goods and services currently produced in an economy. It includes the sum of net exports, government spending, total investments, and household consumption. This metric is crucial in understanding the overall demand in an economy and is often used in macroeconomic analysis to assess economic performance and predict future growth.

Example Calculation

Let's consider an example:

Using the formula to calculate Aggregate Expenditure:

\[ E = 500 + 1200 + 800 + 2000 = 4500 \, \text{million dollars} \]

This means that the aggregate expenditure in this economy is $4,500 million.