Economics says that there is direct possitive correlation between income and spending. That is as income increases, so does the spending and vise versa. The more money people make, the more they spend on purchasing goods and services.There is a model by John Maynard Keynes which suggests that "In a state of unemployment and unused production capacity, one can only enhance employment and total income by first increasing expenditures for either consumption or investment."

In "Equilibrium in the Income-Expenditure Model", it is suggested that macro equilibrium occurs at the level of GDP where national income equals aggregate expenditure. That is, when Income equals Expenditures.

On Macro level let us examine the relationship of Income and Expenditure by studying the Gross National Income and Gross National Expenditure data of Pakistan.
 

You must understand that Pakistan also borrows therefore consumption can be more than its income. In addition, the basic assumptions of economics such as "other factors remaining constant" do not apply to the actual data since other factors do change.

YearGrossNationalIncomeGrossNationalExpenditure
19677586308273.834528065807853.84292
19688186686266.274688544078916.42167
19698808273834.523319081918017.63965
197010142377152.4570010719074254.51490
197110767114657.7068011200822742.54510
19729362321336.318249793944653.00499
19736499196065.449736500513742.55178
19749043636363.636369395630393.93939
197511434444444.4444012648500232.32320
197613567878787.8788014492585212.12120
197715810303030.3030016598759686.86870
197819196262626.2626019466400525.25250
197921313535353.5354022085680212.12120
198025601212121.2121026440694080.80810
198130392726727.2727031106006414.14140
198233128721601.8957034357446009.47870
198331793858937.0079031864943267.71650
198434090011064.1140034751650608.48920
198533672031372.0317035004034498.68070
198632789275641.6615035333278834.46990
198735470840669.9680035942540547.62600
198840130104312.1618041582786590.71490
198941632528799.6368043330007671.55310
199041735288201.7482043144393946.61800
199146520751747.9391046161373674.51670
199249141098847.8844050176550109.96550
199351862932126.4173054636187401.52620
199452027351813.8694053328125363.58830
199561092371435.5350062280965147.45310
199663107002275.7546066184676586.00980
199761935800691.6145065360397999.71720
199861626071021.2822062840084822.33070
199962426345308.5385063989601438.48200
200073025445759.8454074874530079.72940
200171373943661.9718073070766059.77330
200272691117245.8590072372182526.79440
200385836776506.7441082750793921.80300
2004100139968733.7150096964999131.49210
2005111767372670.05400113744541558.28400
2006139768396467.55700147440549580.16300
2007154985420769.13700162384050585.31300
2008173417985019.14600188496526584.22100
2009172564093744.70500180394874793.46700
2010184163841544.98100187761012008.11000
2011223172963541.66100224280807629.87500
2012235976451836.40500242361632992.05400
2013243216656337.79500246893548587.01000
2014258227372243.28500260039272416.58900
2015287067806084.67400287995768589.56600
2016296011975898.69600298059820074.00600
2017321596716024.88300333364939129.10700
2018329083939984.06100346671925164.54800
2019296935209818.72300306601023870.53000



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