Disposable Income: The amount of income that remains after deducting taxes and other mandatory expenses. It represents the money available for spending or saving.
Marginal Propensity to Consume (MPC): The proportion of an increase in income that is spent on consumption rather than saved. If people have a high MPC, they tend to spend a larger portion of their income, which can impact overall demand.
Wealth: The total value of assets owned by individuals or households, including savings, investments, properties, etc. Changes in wealth can influence consumer spending patterns and affect the demand for goods and services.