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3 Tutorials that teach Expenditure and Income Equations
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Expenditure and Income Equations

Expenditure and Income Equations

Author: Dan Laub

This lesson covers the Expenditure and Income Equations

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Terms to Know
Business Cycles

The movement of an economy through expansion, peak, contraction, and trough over time; an assessment of economic activity through time.

Fiscal Policy

Typically policy set by a central government authority, whereby spending by the government is adjusted to stabilize economic activity.

Investment (I)

Money that is used on capital resources; for a company this would be land, equipment, or buildings, and for an individual this could be a home; it is not investing, so not to be confused with the purchase of stocks, bonds, and other wealth accumulation related investments.

Savings (S)

Income that is not consumed or paid in the form of taxes is considered to be savings.