ECON 102 Chapter Notes - Chapter 3: Inventory Investment, Fixed Investment, Government Spending
Document Summary
Expenditure components: economists and policy makers are not only concerned with the total consumer output of goods and services, but are also concerned with allocating this surplus to alternative uses. National tax accounts categorize gdp into four broad expenditure categories. Gdp is the volume of state consumption, spending, revenue and net exports. The gdp dollar falls into one such group. This equation is an identity an equation to hold regardless of the existence of the variables. The name of the national income accounts is named: consumption consists of the goods and services purchased by the households. This is divided into three sub-categories: non-preservative, fossil, and fossil: non-curable items such as food and clothing are items which last for a short period of time. Long-lasting objects such as vehicles and televisions are durable goods. Services include the individuals and companies who services with clients, such as haircuts and doctor visits. Investment consists of the items that were bought for potential use.
