How to Find Aggregate Expenditures

In economics, aggregate expenditure is a method of measuring national income. It is defined as the total annual value of goods and services produced, and actually purchased, within a particular country. More specifically, aggregate expenditure is determined by totaling the consumption, investment, government purchases, and net exports of a country. Individuals use aggregate expenditure as one way of calculating gross domestic product, which measures the economic growth and activity of a nation.

Instructions

    • 1

      Determine a nation's total consumption by multiplying its disposable income by its marginal propensity to consume. Add this total to autonomous consumption (expenditure) and you will have found consumption.

    • 2

      Calculate a nation's total investments by adding its capital expenditures and inventories.

    • 3

      Total a country's government spending by adding all expenses at each level of government.

    • 4

      Subtract the country's total imports from its total number of exports. This will give you its net exports.

    • 5

      Add the nation's sum of consumption, total investments, total government purchases, and net exports using the numbers just calculated to find aggregate expenditures.

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