Consumption is the scale to measure the total ammount of goods bought for any one economy. There are various factors that affect it:
- Prices. If prices are high then consumption will be low because consuming will use up a higher percentage of a person's income.
- Inflation. If inflation is low but is rising, then people will want to buy more earlier, so that they get it for a cheaper price as opposed to having to pay for it when inflation is higher. The same applies but reversed when inflation is high but falling.
- Taxes. If taxes are very high on goods then people may object to this and not buy goods out of protest or they may not be able to afford goods.
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