Open AccessEvolution of Consumption Expenditures of Population of the Republic of Moldova
Author(s) -
Mircea Gutium
Publication year - 2020
Language(s) - English
Resource type - Conference proceedings
DOI - 10.18662/lumproc/ibmage2020/23
Subject(s) - purchasing power , consumption (sociology) , consumer price index (south africa) , inflation (cosmology) , economics , population , purchasing , consumer spending , welfare , index (typography) , standard of living , cost of living , price index , regression analysis , public economics , microeconomics , business , econometrics , macroeconomics , market economy , computer science , operations management , monetary policy , social science , physics , demography , machine learning , recession , sociology , theoretical physics , world wide web
Consumption expenditures is one of the key indicators that reflects the purchasing power of the population. Purchasing power in turn shows the level of social welfare. The population with a stable evolution of consumer spending is at least able to maintain its level of consumption with inflation. In addition, if consumer spending rises in proportion to the level of inflation, there is an increase in welfare and living standards. High level of consumption has positive influence on business. greater aggregate demand will generate more profits, boost company development, and foster job creation. In this study, the affirmation was verified that the consumer price index is one of the factors that influence the standard of living, but not primarily. The following scientific methods were used to approve or reject the statement: scientific abstraction, analysis and synthesis, graphical and tabular method, comparative analysis method, correlation and regression analysis. In this study there was made comparison of consumption evolution and its structure in the Republic of Moldova and in the European Union to identify the difference in welfare. The linear regression model between the consumer price index and growth rate of household expenditures was elaborated.