three points of distinction between autonomous consumption and induced consumption in the tabular form - Economics - Determination of Income and Employment

Question

three points of distinction between autonomous consumption and
induced consumption in the tabular form

Aditi Jain · Accepted Answer

Dear Student

Autonomous consumption
Induced Consumption

Autonomous consumption is that part of the total consumption
which is independent of the level of income In other words, it is
the level of consumption at zero level of income
Consumption that is dependent on the level of disposable Higher
the disposable income, higher is the induced consumption

Such a consumption is necessary for the sustenance of life
Such consumption not necessary for sustenance of life

For instance: Consumption of basic food, clothing and
shelter
For instance: Consumption of luxury items

Regards

Autonomous consumption	Induced Consumption
Autonomous consumption is that part of the total consumption which is independent of the level of income. In other words, it is the level of consumption at zero level of income.	Consumption that is dependent on the level of disposable. Higher the disposable income, higher is the induced consumption
Such a consumption is necessary for the sustenance of life.	Such consumption not necessary for sustenance of life.
For instance: Consumption of basic food, clothing and shelter.	For instance: Consumption of luxury items