Total expenditure on final goods and services is broken down into four large expenditure categories

Total expenditure on final goods and services is broken down into four large expenditure categories

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Total expenditure on final goods and services is broken down into four large expenditure categories,  according to the type of good or service purchased. The sum total of these four expenditure  categories equals GDP. These four expenditure categories are  1. Consumption expenditures: Personal consumption expenditures on goods and  services comprise the largest share of total expenditure. Consumption good expenditures  include purchases of nondurable goods, such as food and clothing, and purchases of durable  goods, such as appliances and automobiles. Consumption service expenditures include  purchases of all kinds of personal services, including those provided by barbers, doctors,  lawyers, and mechanics.  2. Investment expenditures: Investment expenditures can be divided into two  categories: expenditures on fixed investment goods and inventory investment. Fixed  investment goods are those that are useful over a long period of time. Expenditures on 
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This note was uploaded on 11/18/2011 for the course ECO 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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Total expenditure on final goods and services is broken down into four large expenditure categories

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