MACRO ECONOMIC
By :
AHNAF TAQIY ROBBANI
NPM. 1610631030015
ACCOUNTING A8
FACULTY OF ECONOMICS AND BUSINESS
UNIVERSITY OF SINGAPERBANGSA KARAWANG
PREFACE
Thankyou almighty God, who has given His bless to the writer for finishing this macroeconomics assignment. Thankyou for Mr. Irvan Yoga Pardistya, SE., MM., Ak who given the writer the lesson of Consumption Theory.Thankyou for my parents who given the writer strong support. Thankyou for my beloved Andra Wardhana Dhiaulhaq who help the writer to find out e-book about consumption theory.
TABLE OF CONTENT
COVER ................................................................................................................................
PREFACE ............................................................................................................................
(INTRODUCTION)...... .......................................................................................................
a.Background .....................................................................................................................
b.Problem Formulation .......................................................................................................
c.Aims of This Paper ..........................................................................................................
(DISCUSSION)....................................................................................................................
(CONCLUSION) .................................................................................................................
INTRODUCTION
A. Background
Today, many of us misrepresented about consumption theory, and many people think that consumption is all about food, but actually consumption theory is imaging behaviour of customer to fill their needs.
With making this paper i hope that we can find out all about consumption theory that we should understand about that. In addition, we can know how to be a good consumer.
B. Problem Formulation
1. What is consumption theory?
2. Who are the actor?
3. Why is consumptions related with income?
4. How can Income is major factors for consumption?
C. Aims of this Paper
1. To knowing the definition of consumption theory
2. To knowing the actor of consumption theory
3. To knowing why consumptions related with income
4. To knowing how can Income is major factor for consumption
DISCUSSION
1. What
is consumption theory?
Answer : Consumption can be defined in
different ways, but is best described as the final purchase of goods and
services by individuals. One of the most popular and well-known theories is the
Keynesian theory, offered by
economist John Maynard Keynes. This theory states that current real income is
the most important determinant of consumption in the short run. Simply said,
you spend according to how much income you have coming in. This is the basis
for most consumption theory. So, consumption theory is imaging behavior of costumer
to fill their needs.
2. Who
are the actors?
Answer : 1.) Household,
2.) Government consumption
.
2.) Government consumption
.
Why
is consumption relate with income?
Answer : The existence of an
error-correction form between two variables is necessary and sufficient for
them to be cointegrated. We applied for an error-correction form to conform the
linear long-run relationship between permanent income and permanent consumption
under special conditions and the elasticity of permanent income in logarithms
with respect to permanent consumption in logarithms is unity.
4. How can income is major factors for
consumptions?
Answer : The income effect is a phenomenon observed
through changes in purchasing power. It reveals the change in quantity demanded
brought by a change in real income. The figure 1 on the left shows the
consumption patterns of the consumer of two goods X1 and X2,
the prices of which are p1 and p2
respectively. The initial bundle X*, is the bundle which is chosen
by the consumer on the budget line B1. An increase in the money
income of the consumer, with p1 and p2
constant, will shift the budget line outward parallel to it self.
CONCLUSION
Consumption theory is imaging behavior of customer to fill their need, and the actor is all of human in the world that creating a market to fill their need, many factors that influence consumption but, the major factor of consumption is income, in simple way if the salary is big and then the consumption is big to.
·
Pratama Rahardja, Mandala Manurung.
Teori Ekonomi Makro. Jakarta: LPFEUI. 2008.
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