Factors Influencing Consumption and Spending Patterns in an Economy

The video explores key factors influencing consumption in an economy, such as disposable income, savings, wealth, credit availability, interest rates, inflation, and demographics. It explains how these factors affect consumer behavior and aggregate demand, providing insights into economic patterns during different periods.

What is the relationship between disposable income and consumption?

How do savings impact consumption levels?

Explain the concept of the average propensity to save.

What factors can lead to changes in consumer spending during economic instability?

Describe the relationship between wealth and consumption.

What role does credit availability play in consumer spending?

Discuss how interest rates affect consumption.

What is the impact of inflation on consumer behavior?

How does consumer confidence influence spending patterns?

In what ways do demographics affect consumption levels?