22 lines
738 B
Markdown
22 lines
738 B
Markdown
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-4-chapter-03 -->
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# Annual Consumption of Goods
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# Definition
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The total value of goods and services consumed by a nation's population in a given year, including both necessities and luxuries, which when compared to annual production determines whether national capital is being accumulated or depleted.
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## Source Chapter
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Book IV, Chapter 3
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## Context
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Smith argues that the relationship between annual consumption and annual production is a more accurate indicator of national economic health than the balance of trade, as it directly measures whether a society is living within its means.
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## Economic Domain
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Consumption
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---
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