Consumption (economics)

From Wikipedia, the free encyclopedia
Jump to: navigation, search

Consumption is a major concept from economics. Consumers spend their all their income. Some of this income is spent on buying the products and services they need - this is called consumption. John Maynard Keynes talked about consumer spending and a consumption function which expresses how households spend their income. Different schools of economics define this consumption function differently, but they agree on the basic mechanism how consumption works.