ECON 102 Lecture Notes - Lecture 8: Fixed Investment, Inventory Investment
Document Summary
Expenditure components: economists and policy makers are concerned not only with the overall production of goods and services from the market, but also with allocating this surplus to alternate uses. The national revenue accounts classify gdp into four large spending groups. Gdp is the amount of consumption, spending, sales by governments and net exports. That gdp dollar falls into one of these categories. This equation is an identity an equation that must hold regardless of the nature of the variables. It is called the name of the national revenue accounts: consumption consists of the goods and services that households buy. It is classified into three sub-categories: non-preservative goods, renewable products and services: non-curable items, such as food and clothes, are items that last for a short time. Durable goods are long-lasting items such as cars and tvs. Resources involve the work people and businesses do for clients, such as haircuts and doctor"s visits.
