Consumption
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Consumption Function = relationship between consumer expenditure and income.

- In Keynesian view, both output & empl are determined by the level of AD.

(Total Aggregate Demand = Consumer spending + investment spending + gov exp on dom.

produced final G&S, + net exports (X – M) )

Average Propensity to Consume (APC) = the proportion of personal disposable income consumed

Other Notes in this Category

1. Access to credit / Financial Deregulation
2. Consumption
3. Consumption and Saving Exam Questions
4. Determinants of Consumption
5. Inflation
6. Interest Rates and Monetary Policy
7. Key Points
8. Other Theories of the Consumption Function
9. Problems with Consumption Functon
10. Unemployment/Consumer Confidence/Uncertainty
11. Wealth Effect – Asset Prices, Debt Burden, and Windfall Gains

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