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Assignment:
This notes focus on the aggregate spending done by households, referred to as personal consumption expenditures. In the notes, you are introduced to the concepts of the APC and APS. Without providing the specific C, S, and DI values:
a) Solve for your personal, or household's APC and APS prior to the start of the pandemic in March 2020;
b) Solve for your personal, or household's APC and APS now in March 2023.
c) If the values have changed during this period, explain why they changed. In other words, why did your APC either increase or decrease and why did the APS either increase or decrease? If the values have not changed, explain why they have remained consistent.
d) Have you experienced any changes to your APC and APS over the past year as a result of the higher rates of inflation currently being reported? Explain why or why not.
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