Question

Define Autonomous Consumption.

Answer 1

Autonomous consumption is the minimum level of consumption or spending that must take place even if a consumer has no disposable income, such as spending for basic necessities. ...
When combined with discretionary income, a person'sbautonomous consumption determines his or her real income or real wages.

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Answer 2

Answer:

Autonomous consumption is defined as spending that occurs when the level of disposable income is zero.

• Autonomous consumption is typically used to finance consumer needs, but it causes consumers to borrow or withdraw money from savings accounts.
• C = A + MD is the theory formula. where C is the retail expenditure that is equal to A, the autonomous production and is applied to M which is the marginal consumption propensity and D, the real disposable income.
• The formula of Keynes is a staple in the consumer economy. For example - Grocery bills are an autonomous part of the consumption.