<Ul> <Li> Consumption expenditure (C) </Li> </Ul> <Li> Consumption expenditure (C) </Li> <P> Consumption refers to the household consumption over a given period of time . The total household consumption can be divided into two parts, they are: Autonomous Consumption and Induced consumption . Autonomous Consumption refers to the amount of consumption regardless of the amount of income, hence, even if the income is zero, the autonomous consumption would be the total consumption . Induced consumption refers to the level of consumption dependent on the level of income . </P> <Ul> <Li> Y = Income </Li> <Li> Investment (I) </Li> </Ul>

The government (g) component of aggregate expenditure includes