Consumption Spending by Government (Grade 11 NSC Matric Economics): Flashcards
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Symbol for govt consumption expenditure
Symbol for govt consumption expenditure
G
Govt consumption expenditure (G) definition
Govt consumption expenditure (G) definition
Funds govt uses to buy goods & services for immediate use
Two components of govt consumption spending
Two components of govt consumption spending
Public sector pay & spending on goods/services
Largest component of govt consumption spending
Largest component of govt consumption spending
Remuneration of public sector employees
Examples of transfer payments
Examples of transfer payments
Pensions, child grants, unemployment benefits, disability grants
Why transfer payments excluded from G
Why transfer payments excluded from G
They redistribute money, not purchase goods/services
SA 2008 budget: highest allocation sector & %
SA 2008 budget: highest allocation sector & %
Education, 17%
SA 2008 budget: welfare programmes %
SA 2008 budget: welfare programmes %
15%
How G creates employment
How G creates employment
Pays public sector employees, creating jobs directly
Four main components of aggregate demand
Four main components of aggregate demand
Household consumption, investment, govt spending, net exports