what households, not businesses, do. This involves expenditure on goods and services, such as petrol, shopping and a new fridge. However, consumption can be split down further into durable and non-durable purchases.
- Durable purchases are those that are going to last a long time - often years! These include items like cars, cookers, and televisions. Fridges, cookers, washing machines etc. are all durable goods.
- Non-durable purchases are those that only last for a short period of time and are 'used up'. A good example of this is going to the shops to buy food and drink.