The formula to calculate the aggregate income at economic equilibrium is:
\[ \text{AI} = C + I + G \]
Where:
Economic equilibrium is a state at which all economic forces are balanced. In the case of the formula above, this means that, for example, if the total consumption of a country increased, then so too would the aggregate income if all else stayed the same. Sometimes economic equilibrium is used similarly to market equilibrium, but this term is more in line with single products or industries with respect to supply and demand rather than an entire economy.
Let's assume the following values:
Step 1: Sum the total consumption, investment, and government spending:
\[ \text{AI} = 1000 + 500 + 200 = 1700 \]
The Aggregate Income (AI) is $1700.