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

Expenditure and Income Equations

Author: Colton Cranston
This lesson covers the Expenditure and Income Equations
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Introduction to Psychology

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Notes on "Expenditure and Income Equations"

Key Terms

  • Fiscal Policy
  • Typically policy set by a central government authority, whereby spending by the government is adjusted to stabilize economic activity.
  • Business Cycles
  • The movement of an economy through expansion, peak, contraction, and trough over time; an assessment of economic activity through time.
  • Savings (S)
  • Income that is not consumed or paid in the form of taxes is considered to be savings.
  • 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.