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GOVERNMENT DEBT: The total amount of all government securities outstanding. This is also frequently termed the public debt.

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Lesson 13: Aggregate Demand | Unit 2: Doing More Page: 6 of 22

Topic: Investment Expenditures <=PAGE BACK | PAGE NEXT=>

The business sector is the group responsible for investment expenditures.

Investment is the expenditures by the business sector on final goods and services, mainly capital goods like factories and equipment, undertaken in a given time period.

Three specific categories of investment:

  • Fixed structures Buildings, factories, housing.
  • Equipment Machinery and tools.
  • Inventories Raw materials and unsold goods.
Investment is the most volatile of our four expenditures.

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MARGINAL REVENUE

The change in total revenue resulting from a change in the quantity of output sold. Marginal revenue indicates how much extra revenue a firm receives for selling an extra unit of output. It is found by dividing the change in total revenue by the change in the quantity of output. Marginal revenue is the slope of the total revenue curve and is one of two revenue concepts derived from total revenue. The other is average revenue. To maximize profit, a firm equates marginal revenue and marginal cost.

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APLS

GREEN LOGIGUIN
[What's This?]

Today, you are likely to spend a great deal of time lost in your local discount super center trying to buy either a set of tires or a birthday gift for your grandfather. Be on the lookout for infected paper cuts.
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This isn't me! What am I?

In the late 1800s and early 1900s, almost 2 million children were employed as factory workers.
"When you play, play hard; when you work, don't play at all. "

-- Theodore Roosevelt, 26th US president

T-BOND
Treasury Bond
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