What term describes necessary spending even during a recession?
Answer (1)
That’s called Autonomous Consumption. These are the basic and essential expenses that households continue to pay for even when the economy is bad or they lose some income. For example, even during the pandemic when many Filipinos lost their jobs, they still had to buy rice, pay for water and electricity, or buy load for mobile phones to attend online classes. These are non-negotiable needs. Even during calamities like typhoons, autonomous consumption remains steady because people must still survive.
