In economics, absorption is the total demand for all final marketed goods and services by all economic agents resident in an economy, regardless of the origin of the goods and services themselves. As the absorption is equal to the sum of all domestically-produced goods consumed locally and all imports, it is equal to national income [Y = C + I + G + (X - M)] minus the balance of trade [X - M].[1]
The term was coined, and its relation to the balance of trade identified, by Sidney Alexander in 1952.[2]
The term "absorption" is often used in real estate to assess demand for leasing space.
absorption, economics, economics, absorption, total, demand, final, marketed, goods, services, economic, agents, resident, economy, regardless, origin, goods, services, themselves, absorption, equal, domestically, produced, goods, consumed, locally, imports, e. In economics absorption is the total demand for all final marketed goods and services by all economic agents resident in an economy regardless of the origin of the goods and services themselves As the absorption is equal to the sum of all domestically produced goods consumed locally and all imports it is equal to national income Y C I G X M minus the balance of trade X M 1 The term was coined and its relation to the balance of trade identified by Sidney Alexander in 1952 2 The term absorption is often used in real estate to assess demand for leasing space Footnotes edit Deardorff Alan V 2006 Terms of Trade Glossary of International Economics Hackensack World Scientific Publishing ISBN 978 981 256 603 4 Haberler Gottfried December 1976 The Monetary Approach to the Balance of Payments Journal of Economic Literature 14 4 1324 1328 nbsp This trade related article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Absorption economics amp oldid 1056602495, wikipedia, wiki, book, books, library,
