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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 else can I help you with?
How are imports subtracted in the expenditure approach to calculating GDP, because?
Imports are subtracted in the expenditure approach to calculating GDP because they represent goods and services produced in other countries and are not part of the domestic production that contributes to the country's GDP. By subtracting imports, the calculation focuses on the value of goods and services produced within the country's borders, providing a more accurate reflection of the domestic economy's performance.
Why are transfer payments not included as a government expenditure when calculating GDP?
Transfer payments are not included as a government expenditure when calculating GDP because they do not represent the production of goods or services. Instead, transfer payments are simply the redistribution of income from one group to another, such as social security benefits or welfare payments. Including transfer payments in GDP calculations would result in double counting, as the original production of goods and services that generated the income has already been accounted for.
What do the monopoly characters represent?
Ummm.. what the hell?? they're just characters! they don't represent anything!
Who negotiations between labor and employers?
Usually the unions represent labour and the management represent the employers.
What does the US money supply consist of?
The US money supply consists of various components that represent the total amount of money available in the economy. It includes physical currency, such as coins and paper bills, as well as demand deposits held in checking accounts. The Federal Reserve categorizes the money supply into different measures, primarily M1, which includes cash and checking deposits, and M2, which encompasses M1 plus savings accounts, time deposits, and other near-money assets. These components help gauge economic activity and influence monetary policy.
What country does ben wilden represent?
Australia Australia
What stage represent orders that have been received but payment has not been made?
accured expenditure unpaid (AEU)
How do kangaroos represent Australia?
Kangaroos are native Australian marsupials. They only represent Australia in that different species are found all over Australia, and the kangaroo is on Australia's coat of arms. Kangaroos are not a national symbol of Australia.
What does the colours on the Australia flag represent?
the Australia flag represents the british and the ancient australia
Something represent Australia?
There are a great many things in the world that could serve to represent Australia. You could use the koala for example.
Why was Australia flag made?
The Australian flag was made to represent the country of Australia.
What Country Does Stephanie Rice Represent?
Australia
What does the western Australia flag represent?
nothing
Which country did Ian Thorpe represent?
Australia
Who does Governor general of Australia represent?
The Queen.
A graphical representation of a circuit that uses lines to represent wires and different symbols to represent components?
schematic diagram
Which sport did Grant Hackett represent Australia?
swinning
