Consumption
In Keynesian economics aggregate consumption is total personal consumption expenditure, i.e., the purchase of currently produced goods and services out of income, out of savings (net worth), or from borrowed funds. It refers to that part of disposable income (income after taxes paid and payments received) that does not go to saving.
Read more about this topic: Keynesian Formula
Famous quotes containing the word consumption:
“I should like to suggest that at least on the face of it a stroke by stroke story of a copulation is exactly as absurd as a chew by chew account of the consumption of a chicken’s wing.”
—William Gass (b. 1924)
“Daily life is governed by an economic system in which the production and consumption of insults tends to balance out.”
—Raoul Vaneigem (b. 1934)
“Books constitute capital. A library book lasts as long as a house, for hundreds of years. It is not, then, an article of mere consumption but fairly of capital, and often in the case of professional men, setting out in life, it is their only capital.”
—Thomas Jefferson (1743–1826)