What's it: Consumption expenditure refers to the money individuals spend on goods and services. In economics, we can also say it is the residual disposable income after saving. Economists assume individuals allocate their income for two
Consumption Expenditure
How Consumption Expenditure Affects the Economy
In macroeconomics, consumption expenditure affects the economy through aggregate demand. Economists include it as an item in aggregate demand in addition to business investment, government spending, and net exports. Thus, when consumption expenditure
How does Unemployment Impact Individuals, Society, Businesses, and the Economy?
Unemployment has wide implications. It doesn't just have consequences on the individual. But, it also impacts society, business, and the economy. For example, unemployment causes: Higher poverty and crimeDecrease in business revenueIncreased
Which Factors Affect Consumption Expenditure?
Several factors affect consumption expenditure. Disposable income comes first. Without it, there is no income to buy the product. Other factors include consumer confidence, wealth, income expectations, inflation, and interest rates. Why is it