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What are some of the examples of expenditure on final goods and services?
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What is consumption expenditure?
the expenditure by households on consumption goods and services. eg, housing fees and transpotation.
What is expenditure switching policy?
An expenditure switching policy is any action taken by a government which is designed to persuade purchasers of goods and services both at home and abroad to purchase more of that country's goods and services and less of the goods and services produced by others.
What is an aggregate expenditure?
expenditure money paid out; an amount spent expenditure the act of spending money for goods or services expenditure the act of consuming something
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)
What is expenditure approach?
expenditure approach is compute by GDP by adding the money spent by buyers on final goods and services. what are final goods?what are intermediate goods?whats the difference? Expenditure means that the money which is earned for the stur-ups for the business or any investigations for the business to support with any equipment s or for example stuff trainings. In economics, business, and accounting, a cost is the value of money that has been used up to produce something, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost…
What is consumption expenditure?
the expenditure by households on consumption goods and services. eg, housing fees and transpotation.
Difference between expenditure on final goods and expenditure on intermediate goods?
The difference between intermediate goods and final goods is in their nature. Intermediate goods are finished goods which can be used to make other good like wool. The final goods are sold to consumers like a woolen coat.
What is expenditure switching policy?
An expenditure switching policy is any action taken by a government which is designed to persuade purchasers of goods and services both at home and abroad to purchase more of that country's goods and services and less of the goods and services produced by others.
What is an aggregate expenditure?
expenditure money paid out; an amount spent expenditure the act of spending money for goods or services expenditure the act of consuming something
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)
What is expenditure approach?
expenditure approach is compute by GDP by adding the money spent by buyers on final goods and services. what are final goods?what are intermediate goods?whats the difference? Expenditure means that the money which is earned for the stur-ups for the business or any investigations for the business to support with any equipment s or for example stuff trainings. In economics, business, and accounting, a cost is the value of money that has been used up to produce something, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost…
Why are transfer payments not included as a government expenditure when calculating GDP?
no, because they are not payments for currently produced goods or services.
What describes the various types of national income?
National income is the total value of a country's final output of all new goods and services produced in one year. National income includes personal consumption expenditure, gross private investment, government consumption expenditures, net income from assets abroad (net income receipts), and gross exports of goods and services, after deducting the gross imports of goods and services, and the indirect business taxes.
What is aggregate demand'?
the total demand for final goods and services in the economy
The largest federal government purchase of final goods and services is?
defense
What is the largest federal government purchase of final goods and services for?
Defense
Why must an economy's income be equal to it's expenditure?
An economy's income must be equal to it's expenditure because every transaction has a buyer and a seller. It is also because every dollar of spending by some buyer is a dollar of income for some seller. Gross domestic product (GDP) measures an economy's total expenditure on newly produced goods and services and the total income earned from the production of these goods and services.
