Investment Expenditures

Investment Expenditures

  • Submitted By: hhhdx03
  • Date Submitted: 10/06/2008 9:23 AM
  • Category: Business
  • Words: 1398
  • Page: 6
  • Views: 1

-Investment Expenditures: This term refers to actual expenditures on goods and services, or gross domestic product, by the business sector. Investment expenditures specifically deal with investment activities that involve business purchases of capital goods.
-GDP- one of the measures of national income and output for a given country's economy. GDP is defined as the total market value of all final goods and services produced within the country in a given period of time.
-Inventory- A company's merchandise, raw materials, and finished and unfinished products, which have not yet been sold. These are considered liquid assets, since they can be converted into cash quite easily.
-Economic consumption - the utilization of economic goods to satisfy needs or in manufacturing; "the consumption of energy has increased steadily"

Real Gross Domestic Product is defined as the output of goods and services produced by labor and property located in the United States. GDP tends to be an overall indicator of the success of the nation in terms of growth or lack thereof. The 90’s showed the most growth with the largest drops from 1990-1991 and 2000 to 2001 as a result of the World Trade Center attacks. 2003 to 2004 saw a sharp increase possibly due to the US entry into war overseas but the growth was short lived. Fears of recession are floating around as arguments against the slow increase of the GDP since 2006 spread. However, GDP has nearly doubled in the first two quarters of 2008 from the initial forecasting. The increase in the second quarter reflected contributions from exports (as the value of the dollar decreased), personal consumption expenditures (PCE) (some of which reflects the stimulus checks), federal government spending, nonresidential structures, and state and local government spending that were offset by the decrease in private inventory investment, residential fixed investment, and equipment and software. The major contribution has been exports, which have...

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