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induced consumptionthat part of an increase, or decrease, in total CONSUMPTION expenditure that is brought about by a change in the level of NATIONAL INCOME or DISPOSABLE INCOME. In the short term, consumption expenditure consists of AUTONOMOUS CONSUMPTION (consumption expenditure that does not vary with income) and induced consumption. See CONSUMPTION SCHEDULE.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005