Question

The short-run model makes use of the ______, which assumes that private consumption expenditure is sensitive to changes in current income.

Answer 1

Answer:

Keynesian consumption function

Step-by-step explanation:

A consumption function simply talks about the relationship that exists between consumption expenditure and disposable income.

Keynesian consumption function tells or depict through a formula the existing and functioional relationship that occurs usually between total consumption and gross national income.