Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Desired Aggregate Spending
Desired aggregate spending refers to the volume of purchases of the currently produced goods and services that all spending units in the economy wish to make. It is also known as 'planned spending' or 'intended spending'. Desired spending is not an imaginary concept, it refers to what people want to spend out of their available resources. It is, however, different from 'actual spending'. Desired spending refers to the expenditure that the spending units wish to make, whereas, actual spending is the actual expenditure on the goods and services production by the productive sectors of the economy.In the two-sector model, desired aggregate spending or aggregate expenditure (AE) comprises: (1) Private consumption spending, and (2) Investment spending.Private Consumption SpendingPersonal disposable income (i.e., personal income minus personal taxes) can either be spent on consumption expenditure or could be saved. The act of consumption and spent on consumption expenditure or could be saved. The act of consumption and saving are interrelated. That part of disposable income an individual decides not to spend on consumption is automatically saved.Consumption is a function of disposable money income. Consumption is directly related to income. As disposable income rises, consumption expenditure also increase, but in a lesser proportion. It is known as the psychological law of consumption. Investment SpendingInvestment refers to spending on the real assets. Investment expenditure can be made on the following:(a) Purchase and acquisition of equipment, plant, machinery, tools, etc.(b) Construction and of structures like factory building, dams, roads, bridges, shopping complexes, etc.(c) Inventory building, i.e., stock of raw materials, semi-finished goods and unsold finished goods.Investment expenditure is influenced by the real rate of interest and marginal efficiency of capital.
A study by the Information Technology department at WPU revealed company employees receive an average of four e-mails per hour. Assume the arrival of these e-mails is approximated
This paper empirically analyses the effect of oil price shocks on key macroeconomic indicators in the United Kingdom.The aim of the paper is to establish a relationship between oil
Determine about the Expected inflation Note that it is changes in prices during 2008 which matter for the high real interest rate (the time period when your deposit is earning
differentiate among the theory of external trade
Suppose you have $10,000 and wish to purchase an annuity that pays you a fixed dollar amount every month. How much would you receive each month if the annuity rate is 1% and you in
Did monetary policy contribute to the economic crisis of 2008? Why or why not? How did monetary policy makers respond to the crisis? Has their response created an environment for f
Can democracy survive if a majority of the citizenry pays little or nothing in taxes while benefiting directly from a higher level of government spending? Why or why not?
From Tables 3A to 3F in the Appendix the results from VAR/Block Exogeneity Granger Causality Test are that the oil price variable does Granger cause both Inflation and interest rat
Suppose a major brokerage firm advised its clients to buy cigarette stocks under the assumption that, if consumer incomes rise by 50% as expected over the next decade, cigarette sa
Using production possibility frontiers, and indifference curves for Argentina and Brazil, illustrate and explain the movement of both countries to the free-trade equilibrium patter
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd