Aggregate expenditure
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In economics, Aggregate Expenditure is a measure of national income, very similar to GDP. It is defined as the value of planned goods and services produced in an economy. Where GDP is defined as C + I + G + NX and I = Ip + Iu (planned + unplanned investment), Aggregate Expenditures is defined as C + Ip + G + NX.
AE (Aggregate Expenditure) is used in conjunction with GDP in the Aggregate Expenditures Model to predict future GDP direction. In this model, when AE = GDP then the economy is in equilibrium. According to this model an economy will move towards its equilibrium causing changes in the GDP.
AE is also used in the Aggregate Demand-Aggregate Supply Model which advances the Aggregate Expenditures Model with the inclusion of Price changes.
