expenditure money paid out; an amount spent expenditure the act of spending money for goods or services expenditure the act of consuming something
total expenses
There is a direct proportional relationship between aggregate expenditure and real GDP. Aggregate expenditure is actually equal to real GDP. This is different from the planned expenditure.
autonomous onvestment cant be decreased
How does the leakages and injections in the aggregate expenditure model influence the level of GDP of an economy?
GDP would be the amount of gross income a person or company receives. This would be the amount of income minus the amount of expenditure on things like bills.
AUTONOMOUS AND INDUCEDEXPENDITURE :Autonomous expenditure is independent ofchanges in real GDP, whereas induced expenditurevaries as real GDP changes. In general, a change inautonomous expenditure creates a change in realGDP, which in turn creates a change in inducedexpenditure. The induced changes are at the heartof the multiplier effect.Induced expenditure is the sum of the componentsof aggregate expenditure that change withGDP.♦ Autonomous expenditure is the sum of the componentsof aggregate expenditure that do notchange when real GDP changes.
There is a direct proportional relationship between aggregate expenditure and real GDP. Aggregate expenditure is actually equal to real GDP. This is different from the planned expenditure.
autonomous onvestment cant be decreased
How does the leakages and injections in the aggregate expenditure model influence the level of GDP of an economy?
AE=C+I+G+(X-M)
GDP would be the amount of gross income a person or company receives. This would be the amount of income minus the amount of expenditure on things like bills.
american iventiveness and tenoloical progress florished
AUTONOMOUS AND INDUCEDEXPENDITURE :Autonomous expenditure is independent ofchanges in real GDP, whereas induced expenditurevaries as real GDP changes. In general, a change inautonomous expenditure creates a change in realGDP, which in turn creates a change in inducedexpenditure. The induced changes are at the heartof the multiplier effect.Induced expenditure is the sum of the componentsof aggregate expenditure that change withGDP.♦ Autonomous expenditure is the sum of the componentsof aggregate expenditure that do notchange when real GDP changes.
If aggregate planned expenditure exceed real GDP, firms sell more than they planned to sell and end up with inventories being too low. vice versa if aggregate planned expenditure is less than real GDP, firms sell lessthan they planned to sell and end up with unplanned inventories.
Consumption, Investment, Government Expenditure and Net Exports
developmental expenditure in the country increases the purchasing power,aggregate deman and prices,resulying in increased imports
It is a diagrammatic representation of a model of aggregate demand determination based upon the locus ofequilibrium points in the aggregate expenditure sector (IS) and the monetary sector(LM).
It is a diagrammatic representation of a model of aggregate demand determination based upon the locus ofequilibrium points in the aggregate expenditure sector (IS) and the monetary sector(LM).