Expenditure by households on final goods and services is referred to as:

Question

Quizplus · Accepted Answer

Consumption refers to the expenditure by households on final goods and services, excluding purchases of new housing. It is a component of aggregate demand, not the same as aggregate demand itself. Investment refers to spending on capital goods, and disposable income is the income available to households after taxes and transfers, which they can either spend (consume) or save.

Expenditure by Households on Final Goods and Services Is Referred