Is flour always a consumption good?
Flour is a consumption good as when it is utilized once, further utilisation of the same flour is unavailable. Consumption goods are those goods that satisfy the current needs and wants of the consumer.
If autonomous expenditure by the government increases by Rs 5,000, find increase in equilibrium GDP when half of income is always spent on the purchase of goods for consumption.
Is consumption curve always a straight line? Why or why not? Explain.