What is consumer spending?
Consumer spending, or personal consumption expenditures (PCE), is the value of the goods and services purchased by, or on the behalf of, U.S. residents. At the national level, BEA publishes annual, quarterly, and monthly estimates of consumer spending.
What are fixed expenses?
These are the expenses you have that don’t change month-to-month. Your mortgage or rent, car payment, and insurance are examples of fixed expenses. They may vary slightly from year-to-year (say, a rent increase) but overall you can count on them to stay the same for at least a year at a time.
How much money can José spend if he doesn't have a budget?
Note that any point within the budget line is feasible. José can spend less than $56, but this is not optimal as he can still buy more goods. Since T-shirts and movies are the only two goods, there is no ability in this model for José to save. This means that not spending his full budget is essentially wasted income.
How often does Bea publish estimates of consumer spending?
At the national level, BEA publishes annual, quarterly, and monthly estimates of consumer spending. What is Consumer Spending? The goods and services purchased by, or on behalf of, people living in the United States.