What is an aggregate expenditure?

Aggregate expenditure is a total value of annual services and goods production for a given country, and it only pertains to those services and goods actually sold. Aggregate expenditure is similar to a country's gross domestic product, though the GDP accounts for unsold goods and services too.

Sometimes a country produces more goods and services than are sold, but they are not included in the aggregate expenditure until sold, with the surplus being reported in the GDP. Aggregate expenditure is a combined total of household consumption, investments, government spending and net exports. Net export is a total of a country's export dollars minus import dollars.