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What role is played by the consumer in the free enterprise system?

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Consumers play a fundamental role in the economy. The Gross Domestic Product (GDP) of a country is made up of the sum of consumption by all individuals, private investment by companies, public spending and foreign trade. Regarding the weight of each component, private consumption is the most important proportional part, so that changes in consumption have a relevant short-term impact on changes in income, production, employment, inflation and, therefore, are fundamental determinants of business cycles.

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