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

Explain the basic characteristics of IS-curve, Q. Explain the basic charact...

Q. Explain the basic characteristics of IS-curve? IS-LM diagram IS-curve The IS curve shows all combinations of R and Y where the goods marketis in

Phillips curve in lowland, The Phillips curve in Lowland takes the form of ...

The Phillips curve in Lowland takes the form of ? = 0.04 - 0.5 (u - 0.05), where ? is the actual inflation rate and u is the unemployment rate. The Phillips curve in Highland takes

Can growth arise without development, Can growth arise without development?...

Can growth arise without development? Growth is just one feature of development and therefore is an essential but not enough condition for economic development. For example, g

Estimate the maximum possible daily profit, Shambles have selected the "Myt...

Shambles have selected the "Mythical Beasts" range and decided to concentrate on "Pegasus" and "Phoenix." They would now like to find the right mix of these two products in order

Overnight interest rate of central banks, Overnight interest rate of Centra...

Overnight interest rate of Central banks When the central bank buys government securities, it purchases from many individuals, companies and institutions. Deposits and reserves

Increase in growth rates, An increase in growth rates will cause the produc...

An increase in growth rates will cause the production possibilities curve to a. shift inward. b. become steeper. c. become flatter. d. shift outward.

Trade and economic growth, Trade and Economic Growth: For a long time,...

Trade and Economic Growth: For a long time, academic debate on trade liberalization and its positive effects on growth rate remained inconclusive and unsettled. But most recen

Homework, Potatoes cost Janice $0.50 per pound, and she has $5.00 that she ...

Potatoes cost Janice $0.50 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. Suppose she feels that the first pound of potatoes is worth $1.50,

What is social cost benefit analysis, It refers to the study of feasibility...

It refers to the study of feasibility of a project in terms of its total economic cost and total economic advantages. It means to compare total cost with total advantage if we

Protectionisms, definition, argument to protectionism and argument against ...

definition, argument to protectionism and argument against protectionisms

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