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Autonomous consumption, also known as discretionary consumption, refers to the level of consumer spending that is independent of income or unaffected by changes in income. It represents the minimum level of consumption that individuals or households engage in even when they have no income or their income is zero.

Here are key points to understand about autonomous consumption:

1. Consumption and Income Relationship: In economics, consumption is generally considered to be a function of income. As income increases, individuals and households typically have more disposable income available for spending, leading to higher levels of consumption. However, autonomous consumption breaks this direct relationship between consumption and income.

2. Non-Income Determined: Autonomous consumption is not influenced by changes in income. It represents the portion of consumption that individuals or households maintain regardless of their income level. It is often associated with essential expenses or fixed obligations that individuals consider necessary to meet even when their income is minimal or absent.

3. Fixed Expenses: Autonomous consumption includes expenditures that are viewed as necessary or mandatory, such as basic food, housing, utilities, and other essential items. These expenses are typically considered non-discretionary and remain relatively stable even when income fluctuates.

4. Income Threshold: Autonomous consumption sets a minimum level of spending below which individuals or households are not willing or able to reduce their consumption, regardless of changes in income. It represents a threshold below which individuals prioritize meeting basic needs and obligations.

5. Impact on Saving and Borrowing: Autonomous consumption has implications for saving and borrowing behavior. When income is below the level of autonomous consumption, individuals may need to rely on savings or borrowing to meet their essential expenses. Conversely, when income exceeds the level of autonomous consumption, individuals have the potential to save or invest the surplus income.

6. Economic Analysis: Autonomous consumption is an important concept in macroeconomic analysis, particularly in the Keynesian consumption function. The Keynesian perspective suggests that autonomous consumption, along with other components of aggregate demand, influences overall economic activity, employment, and economic growth.

It’s important to note that autonomous consumption does not imply that all consumption decisions are fixed or independent of income. It represents a baseline level of consumption that individuals or households prioritize to maintain basic living standards, irrespective of income changes. Discretionary or variable consumption, on the other hand, fluctuates with income and reflects spending choices beyond essential expenses.

Autonomous consumption helps economists understand consumer behavior, analyze spending patterns, and study the impact of income changes on overall consumption and economic stability.