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GOVERNMENT CONSUMPTION EXPENDITURES AND GROSS INVESTMENT: The official item in the National Income and Product Accounts maintained by the Bureau of Economic Analysis measuring government purchases undertaken by the government sector. Government consumption expenditures and gross investment averages between 15-20% of gross domestic product. This percentage tends to be ebb and flow a little with the political winds.

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Lesson 7: Market | Unit 3: A Graph Page: 11 of 22

Topic: The Equilibrium <=PAGE BACK | PAGE NEXT=>

This market graph combines the forces of demand and supply.
  • Equilibrium is achieved as each side of the market seeks a mutually agreeable exchange.
  • The equilibrium price is 50 cents and the equilibrium quantity is 400 tapes. At this 50-price, the quantity demanded is equal to the quantity supplied.
  • At no other price is the quantity demanded and supplied equal.
  • That's equilibrium.

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GOVERNMENT BORROWING

The acquisition of funds through the financial markets by the government sector which are used to finance government expenditures. In terms of the simple circular flow model, this is one of two basic demands for household saving diverted into financial markets. The other is investment borrowing. Government borrowing is also one of two methods of financing government expenditures. The other is taxes.

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APLS

PINK FADFLY
[What's This?]

Today, you are likely to spend a great deal of time driving to a factory outlet seeking to buy either an electric coffee pot with automatic shutoff or a brown leather attache case. Be on the lookout for bottles of barbeque sauce that act TOO innocent.
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This isn't me! What am I?

Al Capone's business card said he was a used furniture dealer.
"When you play, play hard; when you work, don't play at all. "

-- Theodore Roosevelt, 26th US president

MFC
Marginal Factor Cost
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