A. Income. in macroeconomics is more than the income received by employees in the form of salaries or wages. example, for households and individuals, income is the sum of all the wages, salaries, profits, interest s payments, rents and other forms of earning received in a given period of time.
B. Consumption. Consumption means the expenditures made by households on goods and services. Example, consumer durable products like washing machines are consumed immediately after purchase.
C. Multiplier Concept. The process of generating income through the circular flow exchanges between the households and firms. Example, We focus on current consumption on such goods as food and household items like washing machines and oven toaster. this is in contract to expenditures on capital goods such as housing which service as prepayments of long-run consumption.
D. Savings, the portion of disposable income not spend on consumption of consumer goods but accumulated or invested directly in capital equipment or in paying off a home mortgage, or indirectly through purchase of securities.
E. Taste and preferences. Taste and preferences depend on how products satisfy one's desires. A chance in collective attitude can change aggregate taste and preference, and in turn change the consumption level and marginal propensity to consume. Example, a family residing in Ilocos may consume less of every peso of income than a family of the same income level in living in an urbanized area like Makati City or Cebu City.
F. Population. Population size also determines consumption needs, and therefore affects consumption expenditures with a given income. example, a decrease in household size with income and other factors increasing may reduce households propensity to consume and increase its savings at the expense of nonessentials items in the consumption.
G. Price level. Individual