The Direction of Change of Consumption During Business-Cycle Contractions

C =the aggregate deflated value of services received by consumers= deflated consumer expenditures (including imputed interest charges) minus the net change in the stock of goods held by consumers2 Y aggregate deflated earned income = the sum of disposable personal income, corporation retained profits and the excess of wage accruals over disbursements, divided by the consumer price index K a fixed coefficient 1 > K > 0 .