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Consumption, Investment, Government spending, and Net Taxes

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What are the 4 components of total spending?

The four components of total spending in an economy are consumption, investment, government spending, and net exports. Consumption refers to household spending on goods and services. Investment includes business expenditures on capital goods and residential construction. Government spending encompasses public sector expenditures on goods and services, while net exports represent the difference between a country's exports and imports.


What is the lorenz curve and what dose is suggest about the distribution of income on the us?

the Lorenz curve is the curve that illustrates income distribution, the curve states that there is a big income gap between Americans for many reasons: differences in skills and education, inheritances, and field of work. the wealthiest fifth Americans households earned nearly as much income as the four- fifths combined.


What are the four determinants of aggregate demand?

They are : desired spending, autonomous consumption,induced consumption and desired private consumption.


Give examples of each of the 4 types of aggregate expenditure Which of the 4 represent the largest share of GDP in Australia Can any of the expenditure components ever be negative Explain?

The four components of aggregate expenditure are: consumption- household spending on durable and non durable goods and services, such as necessities like health care, food etc. (60% of total spending) Investment- Business expenditure on new capital equipment which will go on to produce final goods and services in the future. Eg. tools, sewing machines, aircrafts, factories. (15-20% of total spending) Government- current expenditure that provides for day to day functions of government. - Also includes capital expenditure to provide for future needs e.g. schools, roads, power etc. (20-25% of total spending) Net Exports- the value of goods and services sold to overseas companies, minus the value of goods and services bought from overseas.( +1 ~ -1% of total spending) Aggregate expenditure can be expressed by an equation that involves these four components. AE= C (consumption) + I ( investment) + G (government) + (X-M) (Net exports)


How do you draw a bezier curve?

To draw a Bezier curve, start by defining control points: the first and last points determine the endpoints of the curve, while any additional points shape its path. For a quadratic Bezier curve, you need three points (two endpoints and one control point); for a cubic Bezier curve, you need four points. The curve is generated by interpolating between these points using the Bezier formula, which calculates the weighted average of the points based on a parameter ( t ) that ranges from 0 to 1. You can visualize the curve by plotting points along the calculated path or using graphic software that supports Bezier curves.