The Impact of Covid-19 on The Effect Multiplier on The Household Consumption Function in Jakarta

The purpose of this study is to examine the effect a decrease in aggregate income, due activity restrictions during Covid-19 pandemic, on household consumption expenditure Jakarta. research model based Absolute and Permanent income hypothesis, see long-term short-term effects changes expenditure. method quantitative by using annual data at current prices for period 2003 2020. analysis uses OLS ECM regression. results showed that has significant equation short-run long-run function. crisis an impact increase multiplier coefficient. In short term there will also be adjustment expenditures, according what postulated permanent hypothesis. This indicates expansionary fiscal policy effective increasing Further suggests adding inflation variable as proxy economic conditions.
 
 Keywords: Income Hypothesis, Household Consumption Expenditures, National Income, Multiplier.