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What is ex-Ante consumption? Distinguish between autonomous consumption and induced consumption.

Answer:

           

Ex-Ante Consumption - This refers to planned or desired consumption expenditure of households. Consumption function is represented by.
C = \[\overline{C}\] +by
Where,
C = Consumption expenditure
\[\overline{C}\] = Autonomous consumption
b = Marginal propensity to consume (MPC)
Y = National Income
Difference between Autonoums and Induced consumption:
Autonomous Consumption	Induced consumption
(i) When consumption occurs event at zero level of income this is called as Autonomous Consumption.	When consumption increase by increase in income, It is known as induced consumption.