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The important task of China's current economic work is to stimulate domestic demand and stimulate consumption. The government needs to adjust its income distribution policy and use income adjustment measures to expand internal consumption demand. Under this macrobackground, this paper carries out research on the disposable income and consumption expenditure data of urban residents from 2013 to 2016, which has important theoretical and practical significance. Firstly, the mathematical model of grey relational analysis is constructed. Then, the disposable income index and the household consumption expenditure index are explained. Finally, the steps of solving the data mean, calculating the correlation coefficient, calculating the correlation degree, the rank of relevance degree are grayed out and illustrate the analysis results. The research results in this paper can provide theoretical basis and scientific methods for government departments to formulate policies.

Grey Relational Analysis on Disposable Income and Consumption Expenditure for Urban Residents