Aggregate Demand
Consumption
Government Expenditure
Net Exports
Investment
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In 2019 the United States approved a budget of 686.1 billion in discretionary military spending. In 2019 the United States approved a budget of 686.1 billion in discretionary military spending.
Indian govt gave free vaccines. The cost incurred in providing cost-free healthcare is counted in government expenditure.This will increase the disposable income of people thus increasing aggregate demand.
The Indian Government is working on the metro project in Ahmedabad.
Goods and services that consumers spend on.
last more than 3 years-durable goods
non durable goods-less than 3 years
:
Spending by firms on capital goods which
Share purchasing is not an investment in economics as: investment in economics means incvesting in capital that helps in further production, for ex: machinery.
Government spending or expenditure includes all government consumption, investment, and transfer payments.[one sided]
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Replaced investment: replacement of machines or their parts to increase their efficiency. Here the output is maintained.
Induced investment : investing purposely in machinery, etc to produce more or sell more. (If demand = more more induced investment)
investment in capital[means of production].
countries total exports in total imports.
measure of the whole country's national trade
positive net exports/trade surplus - exports > imports [cash inflow is more]
negative net exports/trade deficit - imports > exports
countries with comparative advantages and good resources tend to have trade surplus.
if imports are higher, net exports are to be subtracted[negative figure] and vice versa