Consumption represents the total spending by individuals or a nation on goods and services during a specific time period. This macroeconomic concept reflects the usage of resources, and although many durables like clothing, appliances, and automobiles are consumed over a longer period, their expense is accounted for within the consumption cycle.
Real GDP is an inflation-adjusted measure of the value of goods and services produced by an economy in a specific period, allowing for meaningful comparisons across different years.
A measure of the quality and quantity of goods and services available to individuals and households within an economy, which reflects the overall well-being and comfort level.
