There is an indirect relation between the consumption function and the values of real GDP. It is known that change in disposable income causes change in consumption function but the disposable income is altered with alteration in real GDP. This connection between the consumption function and real GDP is used to calculate the equilibrium expenditure. However before that imports need to be understood as a component of aggregate expenditure.

**Links of Previous Main Topic:-**

- Definition of Economics
- Economic Problem
- Expenditure Multiplier Know the Keynesian Model
- Fixed Prices and Expenditure Plans

**Links of Next Macroeconomics Topics:-**

- Import Function
- Real GDP with A Fixed Price Level
- Actual Expenditure Planned Expenditure and Real GDP
- Convergence to Equilibrium
- Multiplier
- The Basic Idea of the Multiplier
- The Multiplier Effect
- Why Is the Multiplier Greater Than 1
- The Size of the Multiplier
- Imports and Income Taxes
- The Multiplier Process
- Business Cycle Turning Points
- The Multiplier and the Price Level
- Adjusting Quantities and Prices
- Aggregate Expenditure and Aggregate Demand
- Deriving the Aggregate Demand Curve
- Changes in Aggregate Expenditure and Aggregate Demand
- Equilibrium Real GDP and the Price Level
- Expenditure Multiplier Know the Keynesian Model