Answer to Question #202581 in Macroeconomics for saeed

Question

consumption, 

government purchases, 

national saving, 

investment.

Answer 1

Consumption - defined as spending for acquisition of utility, is a major concept in economics.It can also refer to the act of using up a resource or by product of available resources. It is seen in contrast to investing, which is spending for acquisition of future income. 

Government purchases- are expenditures on goods and services by federal, state, and local governments. The combined total of this spending, excluding transfer payments and interest on the debt, is a key factor in determining a nation's gross domestic product (GDP).

National saving- this is the sum of private and public saving within an nation . It equals a nation's income minus consumption and the government spending.

Investment-To invest is to allocate money or asssets and resources with the expectation of a positive benefit/return in the future. It means putting resources into a responsible plan and activity to expect positive returns in future.