Household final consumption expenditure

1. Abstract The objective of the study is to measure the impact of changing oil prices, and other macro economic variables like consumption, government expenditures and average exchange rates on Gross Domestic Product-GDP in the context of Pakistan’s economy. The study is secondary data based and the observation is 150 with five variables and 30 years of data. The data is taken from World Bank, Inflationdata.com, State Bank of Pakistan, Economic Survey of Pakistan, Federal Reserve Bank of America

calculate GDP, Four components of GDP, types of money transactions not included in GDP and aspects of the standard of living that not addressed in the calculation of GDP. Nominal versus Real GDP Nominal GDP versus Real GDP. Nominal GDP, is the value of final goods and services produced by and the economy in the

man, rejecting the unitary model of the household and proposing questions for the future of income transfers. These findings are refuted by findings in the develop world, Mayer found that cash transfers in the US had no effect on child welfare. Duflo highlights ‘that the efficiency consequences of transfer programs may be of different order of magnitude depending on how they are administered.’ A similar picture is seen through the study of household expenditure outcomes, as a means to display the affects

Competitive analysis 1.) a. What is the difference between a final good and an intermediate good? Give one example of each. How are they treated in GDP calculations? Intermediate goods constitute the finished goods that help in producing other goods while the final goods constitute the goods sold to the consumer. The demand for the intermediate goods is always for producing other goods and not be sold to the consumers (Bouman, 2012). This implies that the intermediate goods still have a process

the definition of Gross Domestic Product, how it is calculated and how using GDP is a good measure of the economic well-being. First, we need to know what GDP is. According to M.Parkin, ‘’GDP or Gross Domestic Product is the market value of all the final goods and services produced within a country in a given time period” (Parkin M, (2008) Economics, 8th edition). It measures the value of production a quarter of a year. It is also used to measure the general health of the economy. “Countries seek to

3. Socio-culture environment forces: It includes attitudes, beliefs, customs, religions, etc. of the people. 4. Economic and socio-economic environment forces: It includes income and distribution of income, production costs, consumption expenditures, demographic features and distribution, etc. 5. Financial forces: Financial forces include inflation, monetary situation, foreign exchange market, policies and reserves, etc. 6. Labor forces: Labor forces includes composition

1. A change in all of the following will cause a shift in the consumption function, EXCEPT: A. Investment 2. Planned investment is a function of which of the following variables? C. Technology 3. The planned investment function shows the relationship between planned investment and the real rate of interest, thus the planned investment curve is ____________________. A decrease in the price of capital will cause this curve to ___________________. D. Downward sloping; shift outward 4. An increase in

be calculated in three ways, Income, expenditure and output methods. Mankiw and Taylor(2014) says that in the UK The Office of National Statistics produces a single measure of GDP to do this, three approaches are used (Income, Expenditure and Production) the equal amount of all three of these approaches are then balanced out to create an overall final figure. The expenditure approach is the most commonly used method, it is based on the value of total expenditure goods and services in a current year

that quantifies induced consumption, the concept that the increase in personal consumer spending occurs with an increase in disposable income. The proportion of disposable income which individuals spend on consumption is known as propensity to consume. MPC is the proportion of additional income that an individual consumes. For example, if a household earns one extra dollar of disposable income, and the marginal propensity to consume is 0.65, then of that dollar, the household will spend 65 cents and

FISCAL POLICY Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are government taxation and changes in the level and composition of taxation and government spending can affect the following variables in the economy: * Aggregate demand and the level of economic activity; * The distribution of income; * The pattern of resource allocation within the government sector and relative