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!
Expenditure method is also called Flow-of-Expenditure method, consumption and investment method, income Disposal method, etc.
Expenditure method measures the final expenditure on goods domestic product market prices during a year.This method measure the expenditure on GDPMP during a year.The various steps involved in the use of expenditure method are briefly summarized as follows: 1. First Step: It involves identification of economic units incurring final expenditure. Different economic units are:(i) Household sector(ii) Producer sector(iii) Government sector(iv) Rest-of-the world sector. 2. Second Step: It involves classification of final expenditure into the following categories:(i) Final Consumption Expenditure: (a) Private final consumption expenditure, and (b) Final consumption expenditure of the government(ii) Final Investment Expenditure: (a) Gross domestic fixed capital formation, (b) Changes in stocks, and (c) Net acquisition of valuables.(iii) Net exports:Exports minus imports 3. Third Step: It involves the measurements of final expenditure. The various components of final expenditure are measured as follows:To measure Private Final Consumption Expenditure, the volume of final sale of durable goods, semi-durable goods, non-durable goods and services to the consumer households and non-profit institutions serving households is multiplied by market prices (retail prices). The direct purchases of resident households made abroad are added. The direct purchases of resident non-resident households in the domestic market are deducted, i.e.,Thus, according to the expenditure method GDPMP = Private Final Consumption Expenditure + Expenditure + Government Final Consumption Expenditure + Gross Domestic Investment + Net Exports.
Suppose home cost pricing prevails in international trade, while world output is declining. Consider two economies, A and B, both having floating exchange rates and the same moneta
Q. What do you mean by multiplier effect? Loans and deposits in banks give rise to a significant multiplier effect. We use a simple instance to explain this effect. Consider th
Illustrate the circular flow of income and expenditure according to their models ( classical and keynesian)
#types of economic systems
discuss the different of cost?draw the cost curves
with help of is-lm technique explain the process of integration of money market and goods market by way of keynesian approach
If the MPPL/ MPPK in the production of a good are less than w/r, why is the produce not in producer equilibrium? Explain how, with no change in budget size for the firm and with th
A particle at position I with velocity i has acceleration w given by i = w x ( w x i ) where ? is a constant vector. Show by using the vector triple product and calcula
discuss the contention that the existance of a labour market in a perfect competion is a fallacy
Explain the term- inventory investment We would have a negative inventory investment whenever inventories decrease. By net investments we mean gross investments minus depreciat
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd