What is your short-run mpc

Assignment Help Macroeconomics

Reference no: EM13668875

Suppose that permanent income is find outd as the average of income over the past five years; that is Yp=(Y1+Y2+Y3+Y4+Y5)/5. Suppose further that consumption is given by C=0.9YP.

a) If you have earned $20,000 per year for the past 10 years, what is your permanent income?
b) Suppose that next year you earn $30,000. What is your new Yp?
c) What is your consumption this year and next year?
d) What is your short-run MPC? And long-run MPC?

Reference no: EM13668875

Questions Cloud

System produces electric field in air near earths surface : A charged cloud system produces an electric field in the air near Earth's surface. A particle of charge -1.6 x 10-9 C is acted on with a downward electrostatic force of 4.5 x10-6 N when placed in this field. What is the magnitude of the electric fie..

Is it possible for a human to be born with gill slits : is it possible for a human to be born with gill slits, a tail, and webbed digits? Why or why not?

Research paper : Student selects a focus area from Accounting, Finance, Information Systems, Human Resource Information Systems, International, Marketing, or Operations in the evaluation of the strategic alternatives.

Which type of audit should be performed : Explain how you would describe to the management team the difference between a compliance and a substantive audit. Provide examples to help clarify your explanation.

What is your short-run mpc : Suppose that permanent income is find outd as the average of income over the past five years; that is Yp=(Y1+Y2+Y3+Y4+Y5)/5. Suppose further that consumption is given by C=0.9YP.

Is it better to minimize the cost of the inventory : Is it better to minimize the cost of the inventory with a method like EOQ or to order only to meet demand? Why?

What is their marginal tax rate : Assuming they had a combined $18,000 in federal income taxes withheld, how much of a refund will the Johnsons receive? What is their marginal tax rate?

The eoq model : The EOQ model has a number of assumptions. List them and explain whether they are readily attainable. For example, will the adjustment for quantity discounts easily work?

Based on the learning curve : Based on the learning curve from (1), calculate the total time requires to produce the first 400 units, and the average time of the first 200 units.

User Account

All Pages