EFFECT OF EDUCATION LEVEL, INCOME, INFLATION ON COMMUNITY CONSUMPTION PATTERN IN NORTH SUMATERA PROVINCE

The level of life or prosperity of society is generally reflected in their level and pattern of consumption.
This study to examined the determinants of Education Level, Income, Inflation to consumption of society in North Sumatera. For this purpose study, the secondary data were used. Secondary data for the year 2001 to 2015 was obtained from Bank Indonesia and Badan Pusat Statistik in North Sumatera. The method analysis used is Ordinary Least Square (OLS). Findings are in line with the Keynes economic theory, which suggests that the income variable has a positive effect on household consumption. There are positive relationships between income, college education, they are statistically
significant. And Variables of senior high school education and inflation are not significant to consumption of society in North Sumatra. The study recommends that in order to enhance the purchasing power of the people, increase in salaries, wages, reduction in personal taxes and subsidy