Calculate the average propensity, Macroeconomics

Assignment Help:

Question:

Table below shows the recent trends in terms of consumption.

1244_Define and calculate the average propensity to save.png

(a) (i) Explain what is meant by the term ‘marginal propensity to consume' (MPC) and the ‘average propensity to consume (APC)

(ii) Summarise the changes in country's A MPC from 2003 and 2010.

(iii) Explain how the MPC could exceed 100% in 2004 and 2005.

(b) (i) Define and calculate the average propensity to save (APS) from 2003 to 2010.

(ii) Explain how the APC and APS are related over period 2003 and 2005.

(iii) Define the multiplier effects.

(iv) What further information in additional to that available from the table is required to calculate the multiplier effects on Country's A national income.


Related Discussions:- Calculate the average propensity

Determine the profit-maximizing average, It's been three weeks since you st...

It's been three weeks since you started working for BioMed and there's still no trace of Selwyn. That means you're still BioMed's resident economic expert. Harry the CEO was ple

Energy and the Environment, Following on papers by Pacala and Socolow,1 The...

Following on papers by Pacala and Socolow,1 The Carbon Mitigation Initiative at Princeton University, http://cmi.princeton.edu/ has summarized carbon stabilization strategies at

What is national income, Recognize which of the following purchases is coun...

Recognize which of the following purchases is counted as a part of NI: a) Tata motors purchases tire from Good year to equip latest Indica. b) Tata motors purchases tires fr

Describe about components of GDP, Q. Describe about Components of GDP? ...

Q. Describe about Components of GDP? By considering all arrows to and from the goods market we see that Y + I m = C + I + G + X. Left hand side is the value of all finishe

Explain function of AS-AD model, Q. Explain function of AS-AD model? Th...

Q. Explain function of AS-AD model? The function of AS-AD model is to extend IS-LM model so that we can analyze situations where Y > Y OPT . To achieve this, we should make P e

Give example to calculate the price level, Give example to calculate the pr...

Give example to calculate the price level Imagine that we have created a particular basket of services and goods. We calculate price level at four different points in time duri

Three independent variables, In a regression analysis, three independent va...

In a regression analysis, three independent variables are used in the equation based on a sample of forty observations. What are the degrees of freedom associated with the F-statis

Calculate the numbers, Use the information below to calculate the numbers i...

Use the information below to calculate the numbers instead of "?" marks in the Table. Show and explain all your calculations?

Demand for health care services, What is the relationship between quality, ...

What is the relationship between quality, consumption and demand for health care services?

Control of patulin, Control: In apples molded by Penicillium expansum, mos...

Control: In apples molded by Penicillium expansum, most of the patulin is confined to the region of damaged tissue and simply removing the lesions reduces the toxin by 90%, but i

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd