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What two quantities does a budget balance?
Income and expenditure.
According to the Multiplier Equation equilibrium income will be equal to the multiplier divided by autonomous expenditures?
Actually it is the change in the equilibrium expenditure divided by the change in autonomous expenditure. That will equal the expenditure multiplier.
What is the aggregate expenditure function in terms of income?
the function that represents total spending in an economy at a given level of real disposable income.
If 85 percent of a monthly income is spent if and 360 dollars remains what was the monthly income?
2,400
Why does income equal to total expenditure and also equal to GDP?
Because GDP, which stands for Gross Domestic Product, is the dollar value of total US production (of goods and services) within a given quarter. To measure how much we've produced, we keep track of how much has been bought in the economy. Another way to say this is that we keep track of how much each sector spends. Remember that GDP = C + I + G + NX, where C is consumption by households, I in investment (business spending), G is government is spending, and NX is net exports (exports minus imports). So this is how GDP is equal to total expenditure, expenditure being another word for spending. GDP is also equal to total income because every dollar that is spent is spent to pay someone. For example, if you buy an apple at a grocery store for a dollar, some of that dollar will go to the government, some to the employees of the store, some to the business owner as profit. Every time money changes hands (in a transaction) it is the income of someone (the one who received it) and the expenditure of someone else (the one who gave it). Some possible transactions are: You get paid: you receive income equal to the expenditure of your employer; You buy something: your expenditure is equal to the income of the shop selling you the item; GDP just totals up the amount of all these transactions and so is equal to the total income or total expenditure (as both are equal) in an economy..
Income and Expenditure Account Meaning?
Income - is any money being paid into the business. Expenditure is anything paid out - from a paper-clip to a company car
Is credit income or expenditure?
Credit is neither an income or an expenditure. It becomes an expenditure when you use it. expenditure
What do you mean by income over expenditure or expenditure over income?
income over expenditure is profitexpenditure over income is loss
Why aggregate income is equal to aggregate expenditure?
One man's income is another man's expenditure. The expenditure of buyers on products is, by the rule of accounting, income to the sellers of those products. Every transaction that affects income must affect expenditure. If, for example, a company produces and sells one extra loaf of bread. This transaction will raise total expenditure on bread, but it also has an equal effect on income. If the company produces the extra loaf without hiring any more labour (such as making the production process more efficient), then profit increases. If the company produces the loaf by hiring more labour, then wages increase. In both cases, expenditure and income increase equally.
Why GDP equals aggregate expenditure and aggregate income?
GDP would be the amount of gross income a person or company receives. This would be the amount of income minus the amount of expenditure on things like bills.
What is life assurance fund?
It is the excess revenue income over revenue expenditure for an insurance company.
What is double booking?
Double cash book is a financial book where both the income and expenditure of a company is maintained.
What is the difference between income and expenditure incurred?
Inflow of money is income . Outflow of money is expenditure
What does the income-expenditure identity say about the relationship between income and expenditure?
The income-expenditure identity states that in an economy, total income equals total expenditure. This means that the amount of money earned by individuals and businesses is equal to the amount of money spent on goods and services.
What is between revenue and expenditure?
revenue is income and expenditure is an expense
What is double cash book?
Double cash book is a financial book where both the income and expenditure of a company is maintained.
What is the difference between capital income and capital expenditure?
Income is money coming in, expenditure is money going out (spending).
