Question

What do you understand by consumption ?​

Answer 1

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.

Answer 2

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.