The consumption function, or Keynesian consumption function, is an economic formula that represents the functional relationship between total consumption and gross national income.
What is aggregate consumption function?
The consumption function, or Keynesian consumption function, is an economic formula that represents the functional relationship between total consumption and gross national income.
How do you calculate GDP consumption?
- GDP = C + G + I + NX.
- C = consumption or all private consumer spending within a country’s economy, including, durable goods (items with a lifespan greater than three years), non-durable goods (food & clothing), and services.
