StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Using the Income-expenditure Model in UK Economy - Essay Example

Comments (0) Cite this document
Summary
This paper talks that an economy records all transactions that take place within the economy and such transactions express how much the economy produces. Gross domestic product is a measure of the output produced by factors of production located within the economy. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.1% of users find it useful
Using the Income-expenditure Model in UK Economy
Read TextPreview

Extract of sample "Using the Income-expenditure Model in UK Economy"

Download file to see previous pages As the discussion declares consumption refers to the use of goods and services by consumer purchasing or in the production of other goods. Investment is referred to as an addition to the real capital stock of the economy and it comprises the purchase of new capital equipment, the construction of buildings and the addition to the stock of raw materials, semi-finished goods and finished goods. Economists refer to investment as spending by firms.
This paper stresses that government expenditure is the existing spending by central government and local authorities on the provisions of social goods and services such as, health, education, roads etc, marketed goods and services such as coal, postal services, etc and transfer payments e.g., child benefit, job seekers allowance, state pension etc. Government expenditure is primarily financed by taxation and borrowing. Exports are goods and services produced in the UK and are purchased by foreigners, the purchase of exports adds to the income of UK households and firms. Exports therefore provide an injection into the economy. Imports can be classed as a leakage from the economy as it represents the amount of money spent on goods and services that are purchased outside the home economy. It leaks out of the circular flow and forms part of the demand for output from foreign countries. A change in any of these constituent variables of the aggregate demand will result a change in the overall aggregate demand. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Using the Income-expenditure Model in UK Economy Essay”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1535735-using-the-income-expenditure-model-in-uk-economy
(Using the Income-Expenditure Model in UK Economy Essay)
https://studentshare.org/macro-microeconomics/1535735-using-the-income-expenditure-model-in-uk-economy.
“Using the Income-Expenditure Model in UK Economy Essay”, n.d. https://studentshare.org/macro-microeconomics/1535735-using-the-income-expenditure-model-in-uk-economy.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Using the Income-expenditure Model in UK Economy

Keynesian Aggregate Expenditure Model

... of the of the Concerned 7 June Keynesian Aggregate Expenditure Model The current US government is facing many challenges owing to the slowdown of economy and the poor performance of many US institutions. In that context, the Keynesian Aggregate Expenditure Model is of apt relevance. Aggregate expenditure or aggregate demand is the total expenditure on the domestic goods and services. As per this model, the aggregate demand in an economy comprises of Consumption expenditure (C), Net exports (E), Investment expenditure (I) and Government Expenditure (G) (Pass & Lowes 8). Hence: Aggregate Demand = C+I+G+E Some aspects of the aggregate demand tend to be stable and alter at a slow pace at any time (Pass & Lowes 8). Other aspects of aggregate...
1 Pages(250 words)Essay

The UK Economy

...%. As a result of these measures, the government has been witnessing much of the fiscal limitations that are threatened the predictability of potential cuts in public sector expenditure. a) Section One: Features and Characteristics of UK Economy: Economist would consider an ambiguous measure of the economic welfare but not necessarily those measures which exist as an approximation of the gross domestic product as well as the National income which is only achieved when the overall personal income increase. Looking at UK situation, gross income has not been in tandem with other developed countries. Here in UK, there has been both the cyclic fluctuation and change in trend. Some of the changes experienced that can help show that the amount...
13 Pages(3250 words)Research Paper

Consumer Expenditure

.... According to an argument by Barro saving also denies the consumers a significant amount of money to spend on other goods (106). It is the same scenario with high income earners. This bracket focuses more on investing and securing their financial future. With the global economy under numerous uncertainties, saving provides the most logical way to secure ones financial future. Apart from the income statements of consumers, the price of households goods determining the decision making on expenditure. Noel argues that a perspective on the market 2 years back from now, it is estimated that the price of general commodities has risen by an average of 50% (93). The basic needs like food and clothing have also been affected. This in turn means...
4 Pages(1000 words)Assignment

Different levels of income and expenditure

e, fixed medical allowance, servant allowance, deputation allowance, other allowances like marriage allowance, telephone allowance, city compensatory allowance, family allowance etc. In addition to wages and salary, perquisites under section 17(2) are provided to employees by employer which includes certain benefits or amenities provided either voluntarily or under service contract. The perquisites for income tax purpose are tax free perquisites, taxable perquisites, perquisites taxable under specified cases. Example:     Amt in GBP Basic pay    40000 Dearness allowance    3000 Leave salary    5400 Professional tax paid by employer    5400 Perquisite for house:      15% of salary (40000+3000+5400)  7260   Furniture rent  1000   Le...
9 Pages(2250 words)Essay

Reflection using Gibbs model

...?Reflection Using Gibbs Model Table of Contents Table of Contents 2 Introduction 3 Gibbs Model 5 Conclusion 13 References 15 Introduction In healthcare organisations, reflection is identified as a process utilised with the purpose of reviewing, assessing and analysing experiences based on theoretical concepts with the intention of informing future actions. Reflective practice is applied as an important approach in healthcare organisations to be a reflective practitioner amid medicine, pharmacy and nursing. In this context, reflective practitioner with critical thinking along with reflection is able to mitigate the gap, which exists amid healthcare practices and concepts. Moreover, with the assistance of reflection practice, healthcare...
12 Pages(3000 words)Essay

Iran Mideasts Model Economy

...Strategic Management - Iran Mideast's Model Economy _ Case Study Introduction: New large scale emerging markets such as China and India provide a strong internationalization incentive because of the potential demand in them1. Because of currency fluctuations firms may also choose to distribute their operations across many countries including emerging ones to reduce the risk of devaluation in one country2. However the uniqueness of emerging markets presents both opportunities and challenges.3 Iran from the facts found in the case study may be strategically treated as an emerging market presenting new opportunities as well as challenges. Challenges of Iran: The foremost challenge Iran faces is the trade sanctions from the United States...
2 Pages(500 words)Essay

Real Consumer Expenditure and Real Disposable Personal Income

This is evidenced by the R2 value of 0.9968 for the exponential fit as compared to the R2 value of 0.943 for a linear fit (not shown here). From a span of only 60 years, consumption expenditure increased eightfold. The trend only serves as further evidence of the consumer characterization attributed to American society.
To determine volatility we graph the rate of change of the data set. For a time-series data, the process would involve subtracting the value for the former year from the value of the current year then dividing by the value of the former year. The resulting value is then multiplied by 100% to convert it into percentages. While the graph in Figure 1 shows that the values are essentially increasing, Figure 2 woul...
4 Pages(1000 words)Research Paper

Adam Smith & UK Income Taxation

... and the promotion of incentive to invest will strengthen the market economy of the United Kingdom and consequently promote efficiency. Thus, the extent that a tax system can promote efficiency will be associated with competitiveness and incentive to invest. IV. Analysis of the income tax system of the United Kingdom One point for analysis of UK’s tax system is whether it promoted an equitable distribution of income. The study of Adam et al. (2010) argued that the combined result of the tax reforms in the United Kingdom is that UK’s taxation system redistributed significantly from the rich to the poor (Tobin 2010, p. 2). Yet, at the same time, the irony of all ironies is that Tobin (2010, p. 2) reported that based on the study of Adam et al...
18 Pages(4500 words)Essay

Income inequality in the UK

... Summary of the Article: Income Inequality in the UK Inequality manifests in differently throughout and not just in income. Nonetheless, it is the income inequality that gets more attention. Economists measure income inequality using two methods; the Gini coefficient and the ratio of income. The Gini coefficient is a summary of the degree of inequality in the income distribution in one number. A higher number shows more unequal distribution of income. According to (Cribb, 2013 ) the rise in the level of income inequality in industrialized nations lead by the host of English speaking nations such as the UK, US, Australia and New Zealand have been as a result of a host of factors. These factors are numerous and include; increases...
1 Pages(250 words)Essay

Consumption expenditure

... experienced a marginally slower standard compound growth of GDP in five years after the economic downturn; this is also the same for the service industry. In quarter four of 2014, only the production and service industry outperformed the post-downturn growth rates of the headline industry. Within the insurance, financial and service industries have exhibited certain strengths when compared to the 5-year average. The development in services has also been supported by the accommodation and service industries. Question 5 Consumption is the expense disposed on the services and goods. There are a number of determinants that affect the short-run consumption expenditure. Some of these determinants include disposable income...
4 Pages(1000 words)Coursework

A Six Stage Model of the Innovation Process

This paper will focus on the relationship and impact and innovation will have on politics. The backbone of the paper will be the strong opinion of Professor Langdon Winner who teaches at the Department of Science and Technology Studies. He has said that “technical things have political qualities” and this paper will base its study on this. “Langdon Winner is a political theorist who focuses on social and political issues that surround modern technological change.” (Brief Biography). When undertaking a serious study of the topic, so many theories and assumptions also begin to emerge that are related to the topic. They include concepts like SCOT, Actor-Network Theory, determinism, closure, and other related f...
9 Pages(2250 words)Case Study

Using Computers to Teach Mathematics is Better than Traditional Methods

... confidence, improving motivation and stimulating interest, and creating an overall good classroom environment. During the last two decades, huge advances in computer technology for information and communication purposes have impacted upon all levels of education and many courses as well. Using technology to support the teaching of Mathematics generally started later than for other subjects. The first electronic machine used to assist in calculation however was not the computer but the calculator. In schools in the US, UK and some other countries, the calculator has been used since the early 1980’s. Incidentally, before electronic calculators, there were mechanical calculators and even before that the slide rule to aid calculation. In US...
7 Pages(1750 words)Case Study

Capital Asset Pricing Model and Recent Developments

It is the most essential aspect of any venture. The important considerations that finance has within it, is that of profit and loss. The business as a whole or a person as an individual always strives to earn a profit. To earn a profit, one has to undertake uncertainties that are known as risks. Therefore, profit is also known as the reward for incurring risks.
In the present world of today, the capital market has come up as a viable investment opportunity for individuals all across the globe. People invest their hard money only with the expectation to earn profit or return. The stocks of various companies that are traded in the capital market are also known as capital assets. Prior to investing in any of the stock or capital...
7 Pages(1750 words)Assignment

UK Employment Policy

Analysts explain that this situation is not simply because citizens don’t want to exercise this fundamental right, but largely because of the continued failure of the governments to institute an effective implementation of employment policies put in place (Howell, 2005). It has clearly been demonstrated by Mathew (2006) that the United Kingdom government has shown a lot of unwillingness in tackling the reported unemployment crisis.

Available research findings reveal that there are high unemployment rates among UK born ethnic minorities which show great diversities. According to a 2001 report, it is shown that unemployment rates amongst UK born men and women from black, Bangladeshi and Pakistani ethnic groups were...
9 Pages(2250 words)Case Study

Global Employee Information and Consultation: Replicating the European Model

...Global Employee Information and Consultation: Replicating the European Model INTRODUCTION The only way for the employees and their representatives to reach the level of multinational corporations is to create an effective transnational mechanism that facilitates consultation and information disclosure. The European model (EWC) is an example of an institution that intends to provide employees voice in the transnational arena. The information dissemination and consultation arrangement enable employee representatives to participate in discussing issues that pertains to their employment. However, there is a need to analyze whether EU style of legislating a mechanism shall be effective if replicated globally. The answer in part depends...
9 Pages(2250 words)Coursework

Corporation Income Tax

Since the beginning of the 20th century, Antitrust Acts have been There are instances, however, that the income or gain out of the said sale or exchange or distribution may not be recognized as such income or gain for purposes of income taxation. One such example is in the case of a controlling corporation acquiring or buying the properties of the corporation that it controls upon the liquidation of the controlled or subsidiary corporation. For the said parent-subsidiary sale or exchange therefore, the general rule is that the gain is not recognized as taxable income. There are requirements to comply with as there are some exceptions.

Parent Corporation owns sixty percent (60 %) of the single class of stock of Subsidiar...
19 Pages(4750 words)Case Study

Energy Expenditure During Walking and Jogging

Although walking is frequently dismissed as too easy or not difficult enough by fitness experts, the exercise itself bestows just as much benefit to the exerciser as jogging or running, with less of the jarring effects of more intense locomotion. This leads to a dramatically lower dropout rate of participants, meaning staying motivated is simpler on a walking regimen. Jogging, in contrast, requires additional effort without statistically significant improvements in time used in the workout, which leads to questions of whether walking or jogging is the more beneficial activity given the same resources. Based on the evidence that negates claims of an advantage for jogging, and evidence that jogging can lead to damage of body structu...
7 Pages(1750 words)Assignment

What to Consider in Structure-Conduct-Performance Model

The best possible outcome for SA is when it plays L while SS plays U and the best possible outcome for SS is when it plays L, and the other plays U. These outcomes (L, U) and (U, L) are difficult to achieve. This is because these strategies are not dominant for both. There is an incentive for one player to deviate.
If the prices are decided every week then the strategy would change in terms of the components. For the repeated games, the Nash equilibriums of all the sub-games are the same as the equilibrium of each one-shot game. The number of components in the strategy would increase because of the repetition of the game (both would still play L, L) however the pay off associated with the game would be increase by times of th...
6 Pages(1500 words)Essay

Economy and Social Activity of The Broken Hill Community

Soon a retail industry was built up and the community began to grow and is considered to be a society with a civic nature (Learning Communities in Education and Training, 2009). The community of Broken Hill can be considered to be highly diverse with a census that was conducted in the area in 1996 showed that out of the then population there were 961 people who came from overseas and a large amount of those was not from an English speaking nation. The large composition of the population in the community at the time was aboriginals or Torres Strait Islanders. Broken Hill thus shows a varying ethnic community and a diverse mindset considering a large proportion of the people are from nations such as Greece, Malta and even Italy (Lea...
6 Pages(1500 words)Case Study

Characteristics of a Mixed Economy

Economic systems are crucial to the progress of a nation for they shape the way a nation’s economy operates. There are three major types of economic systems, namely: A planned economy which operates at the sheer instructions of the Government; Market Economy has complete independence in its operations and is at the disposal of the market forces of demand and supply, Mixed Economy is an amalgamation of features from both the previously mentioned economic systems and therefore has economy operating tools which are shared by the private sector and the public sector, hence it could be regarded as a balanced mixture of the political ideologies of capitalism and socialism (Schlesinger, 1962). A mixed economy is an intricate and co...
6 Pages(1500 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Using the Income-expenditure Model in UK Economy for FREE!

Contact Us