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.
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