CONSUMPTION LINE: A graphical depiction of the relation between household consumption expenditures and household disposable income that forms one of the key building blocks for Keynesian economics. The slope of this line is positive, greater than zero, less than one, and goes by the name marginal propensity to consume. The vertical intercept of the consumption line is autonomous consumption. The aggregate expenditures line used in the Keynesian cross is obtained by adding investment, government purchases, and net exports to the consumption line. Because saving is the difference between disposable income and consumption, the saving line is a complementary relation to the consumption line.

     See also | consumption function | Keynesian economics | consumption expenditures | disposable income | marginal propensity to consume | aggregate expenditures | aggregate expenditures line | Keynesian cross | induced consumption | autonomous consumption |

CONSUMPTION LINE, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2022. [Accessed: December 9, 2022].

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The revenue received for selling a good per unit of output sold, found by dividing total revenue by the quantity of output. Average revenue often goes by a simpler and more widely used term... price. For a monopolistically competitive firm average revenue is greater than marginal revenue. Average revenue for a monopolistically competitive firm is often depicted by a negatively-sloped average revenue curve.

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