evgeniya_m/Fotolia
Aggregate demand is a key concept in macroeconomics and given that consumption expenditure by households comprises its largest component, it is clearly important to be able to understand the factors that influence the overall level of expenditure by households.
Table 1 shows data on aggregate household consumption and income in the UK since 1997. You can see from the table that household final consumption in 2012 made up about 66% of GDP. This is calculated by expressing the entry for household final consumption at constant prices as a percentage of the value for GDP in that year.
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