Importance of consumption in line with production activities
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The consumption function is of considerable importance for macroeconomic analysis and policy formulation primarily because households' consumption decisions affect the way the economy as a whole behaves — both in the short run and in the long run.
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Answer:
Explanation:
The consumption function is of considerable importance for macroeconomic analysis and policy formulation primarily because households' consumption decisions affect the way the economy as a whole behaves — both in the short run and in the long run.
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