Class XII Economics: Consumption Function and Aggregate Demand

Functional relationship between income and consumption

Total value of all final goods and services planned to be bought by all sectors of the economy at a given income level during a period of time

Household consumption expenditure (C), Investment expenditure (I), Government consumption expenditure (G), Net export (X-M)

<p>Total value of all final goods and services planned to be produced by all producing units in the economy during a given period of time</p> Signup and view all the answers

<p>Consumption that does not change with a change in income</p> Signup and view all the answers

<p>C = f(Y)</p> Signup and view all the answers