Share This Article:

Economic Definition of C. Defined.

Offline Version: PDF

Term C Definition: The standard abbreviation for consumption expenditures by the household sector, especially when used in the study of macroeconomics. This abbreviation is most often seen in the consumption function, specified as C = a + bY, where Y stands for national income. It is also used for the aggregate expenditure equation, AE = C + I + G + (X - M), where I, G, and (X - M) represent expenditures by the other three macroeconomic sectors, business, government, and foreign.

 

« by-product | C corporation »

Permalink: https://glossary.econguru.com/economic-term/C

Alphabetical Reference to Over 2,000 Economic Terms