What do you understand by consumption ?
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What do you understand by consumption ?
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Answer:
Consumption is defined as the use of goods and services by a household. It is a component in the calculation of the Gross Domestic Product (GDP). Also, GDP can be used to compare the productivity levels between different countries. Macroeconomists typically use consumption as a proxy of the overall economy.
Consumption, in economics, the use of goods and services by households. Consumption is distinct from consumption expenditure, which is the purchase of goods and services for use by households.