Respuesta :
If an economy is defined by the following algebraic equation: c = 209 0.6 (yd). This algebraic equation represents the consumption function.
What Is the Function of Consumption?
The consumption function, often known as the Keynesian consumption function, is a mathematical expression expressing the functional connection between total consumption and gross domestic product. John Maynard Keynes, a British economist, introduced it and said it could be used to monitor and foresee total aggregate consumption spending.
According to the traditional consumption function, changes in income and consumer spending are entirely correlated. If this were the case, aggregate savings ought to rise proportionately as the GDP does over time. The goal is to establish a mathematical link between consumer spending and disposable income, but only at the aggregate level.
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