ECO102H1 Chapter Notes -Real Interest Rate, National Income And Product Accounts, Disposable And Discretionary Income
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ECO102H1 Full Course Notes
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Document Summary
Desired aggregate expenditure the sum of desired spending on domestically produced output. Ae = c + i + g + (x-im) National income accounts measure actual expenditures in each of the four expenditure categories. National income theory deals with desired expenditure in each of the four. ** categories ( consumption, investment, government spending and net exports) categories . Autonomous expenditure components of aggregated expenditure that do not depend on the national income. Spending that regardless of how much money there is supplied a given amount has to be spent. Induced expenditure components of aggregated expenditure that do change systematically in response to changes in national income. Consumptions is 55-60% of gdp, investment is about 20% closed economy an economy that have no foreign trade in goods service or assets. There are only two possible uses of disposable income- consumption and saving. The total desired consumption expenditure of all households to several factors that.
