Answer:
final good government expenditure
final goods investment
final good ; consumption expenditure
intermediate good ; investment
Explanation:
A final good is a good that is consumed directly by consumers e.g. the textbooks bought by a student does not need to go through further production before it is suitable for use by the student.
An intermediate good is a good that is used in the production of the final good. e.g. the packing boxes bought by amazon will be used in packaging the final good demanded by consumers.
Consumption spending includes spending by households on goods and services. Consumption spending includes :
spending on durables - e.g. laptop
spending on nondurables - e.g. clothes, food
spending on services - e.g. payment of hospital bill
the purchase of a textbook by a student is an example of consumption spending on durable goods
Investment - It includes purchases of goods and services made by businesses in the production of goods and services
the airplane purchased by the airline would be used to provide services for airline customers. Also, the packing boxes bought by Amazon would be used in delivering goods to customers
Government spending - It includes government consumption expenditure and gross investment. The purchase of a new limousine for the president is an example of consumption expenditure
