Learn the Keynesian consumption function with clear graphs & examples. Understand how income affects spending in simple, easy-to-follow terms.

Mar 28, 2023 · Let's understand the concept of Consumption Function with the help of the following consumption schedule and consumption curve. The above schedule shows consumption at different …

Nov 5, 2024 · The graph of consumption function is given below. The horizontal axis (x-axis) is labeled with disposable income while the vertical axis (y-axis) is labeled with consumption.

Graphical representation of the consumption function, where a is autonomous consumption (affected by interest rates, consumer expectations, etc.), b is the marginal propensity to consume and Yd is …

Apr 16, 2019 · Definition of consumption function C = a + b Yd where a=autonomous consumption, b = MPC and Yd = disposable income. Diagrams to explain consumption function and shift in different …

Watch this next video for more practice in graphing the consumption function. Then take it a step further to analyze what kind of impact an increase in income will have on consumer spending.

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, offering insights …