2.2.2 Consumption

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Created by: 13clarken
Created on: 18-01-19 11:17

... is the consumer spending on goods and services over a period of time

Consumption

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... are goods that last a long time

Durable Goods

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... goods are goods that last for only a short time

Non durable

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... is the proportion of income that people actually have to do with as they please

Disposable Income

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... measures the proportion of extra income that is spent on consumption

MPC

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... measures the average amount spent on consumption out of total income

APC

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... =Change in consumption / Change in income

MPC

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... =Consumption / Income

APC

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Factors determining household ... :Interest rates, Inflation, Expectations, Wealth, Availability of Credit, Income, Composition of households

Consumption

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Other cards in this set

Card 2

Front

... are goods that last a long time

Back

Durable Goods

Card 3

Front

... goods are goods that last for only a short time

Back

Card 4

Front

... is the proportion of income that people actually have to do with as they please

Back

Card 5

Front

... measures the proportion of extra income that is spent on consumption

Back

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2.2.2 Consumption