In economics, the consumption function describes a relationship between consumption and disposable income. [1][2] The concept is believed to have been introduced into …

Aug 23, 2025 · What Is the Consumption Function? The consumption function, introduced by John Maynard Keynes, outlines how total consumption relates to gross national income, …

Nov 5, 2024 · A direct or positive relationship between consumption and household disposable income is called consumption function.

The consumption function is a key component in understanding aggregate demand and how the economy responds to changes in income, policy, and expectations. We can also use the …

The consumption function, sometimes referred to as the consumption schedule, illustrates how changes in disposable income affect consumption levels. When households experience an …

The consumption function is an economic formula directly associated with the total consumption and gross national income. It was introduced by the British economist John Maynard Keynes …

In macroeconomic models the consumption function tracks total aggregate consumption expenditures; for simplicity it is assumed to depend on a basic subset of the factors …

We write the consumption function formula as follows: C = A + cY. In words this means that consumption (C) is equal to some autonomous spending (A) plus some proportion (c) of …

The consumption function is a key concept in Keynesian economics that describes the relationship between aggregate consumption and disposable income. It shows how much …

Mar 19, 2024 · The consumption function is an economic concept that elucidates the relationship between income and spending. John Maynard Keynes introduced it, suggesting that …