Consumption

Consumption

Consumption is the largest part of the flow of income. It is vital in the determination of employment and income. Economists use consumption figures to determine levels of income, the distribution of income, and, of course, purchases. Because of these factors one is able to put a proper perspective of the economy and determine what to do and how to improve it. Governments use the consumption function,in part, to determine social spending levels. [JP] {EC}