Aggregate Expenditure Calculator
Formula: AE = C + I + G + NX
Aggregate Expenditure Calculator
| Component | Description |
|---|---|
| Consumption (C) | Total spending by households on goods and services. |
| Investment (I) | Spending on capital goods by businesses, including buildings, machinery, and equipment. |
| Government Spending (G) | Total government expenditures on goods and services. |
| Net Exports (NX) | The value of exports minus the value of imports. |
| Aggregate Expenditure (AE) | The total of C, I, G, and NX. |
| Formula | AE = C + I + G + (X – M) |
| Purpose | Used to measure the total spending in an economy and predict changes in economic activity. |