Miranda, Casimiro V. Jr.Munaf, Zamzami2024-10-102024-10-101983-01https://selib.upd.edu.ph/etdir/handle/123456789/693The aggregate consumption function construct serves the purposes of identifying the passive, or determined, component of aggregate demand. It is a heart of modern macroeconomic analysis after Keynes made it a corner stone in the General Theory. This study is aimed at explaining consumption behavior in Indonesia by utilizing time series data on aggregate income, consumption and other macroeconomic variables for the period 1960 to 1980. This study mainly used the simple Keynes model and Duesenberry hypotheses to test empirically whether aggregate consumption is a stable function of aggregate income, and whether it is influenced by improvement in the Indonesian economy. The high marginal propensity to consume (0.837) found in this study is important for induced-investment to attain an increase in income and employment. In order to observe such changes, the patterns of consumption in the pre and since new order government are examined. The stability of the estimated behavioral relationships and the concerned parameters are also tested.enThesis