Principles of Macroeconomics / Unit 3 MAC 0203 short lesson, about 20 seconds
Consumption
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The idea
Consumption is household spending on goods and services. It is the largest component, around two thirds of GDP, and the steadiest.
In practice
Groceries, rent, haircuts, cars and medical care all count.
Where people slip
Because consumption is both large and stable, it rarely drives a recession, though it deepens one when it falls.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
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