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

Opportunity costs associated, The opportunity costs associated with the use...

The opportunity costs associated with the use of resources owned by a firm are: a. externalities b. implicit costs c. explicit costs d. sunk costs

What is GDP?, What was Real GDP for 2009? What does GDP tell us? How did ...

What was Real GDP for 2009? What does GDP tell us? How did GDP change from 2008? What caused these changes? What was GNP for 2009? What is the difference between GDP and GNP?

Tax-deductible and interest rate, Suppose that Lilistan has two types of ci...

Suppose that Lilistan has two types of citizens: low-income citizens (income = $20,000) and high-income citizens (income = $80,000). Interest income is currently taxed and each typ

Eco 372, what does a weaker dollar to a) raise inflation and contract the e...

what does a weaker dollar to a) raise inflation and contract the economy b) reduce inflation and contract the economy c) raise inflation and expand the economy d) reduce inflation

What are the gains from trade, Shows the productivity for the countries Pin...

Shows the productivity for the countries Pin and Pang. Machines Bread Pin     4 or 3 Pang 3 or 8 1) If the working population of Pin and Pang are both 6 million, divide

Determine the dimensions of antenna , Design a rectangular patch antenna (s...

Design a rectangular patch antenna (substrate: εr = 3, tan-δ=0, h = 0.75 mm) operating at f0 = 2.5 GHz a) Determine the dimensions W and L of the antenna, assume w/λo b) The

Relation between money - wealth and income, Q. Relation between Money - wea...

Q. Relation between Money - wealth and income? Money isn't the same as wealth. An individual may be very wealthy however have no money (for instance by owning stocks and real e

Hurricane or flood or a pandemic strikes, When a hurricane or flood or a pa...

When a hurricane or flood or a pandemic strikes a country, who is most likely to respond first?

What is money has nothing to do with token itself, What is money has nothin...

What is money has nothing to do with token We also consider that what is money has nothing to do with token or commodity itself: USD is money in United States but not in

Influence the losing price bubble, What happened to the credit standards (e...

What happened to the credit standards (e.g., minimum down payment, mortgage loan relative to the value of the house, and creditworthiness of the borrower) between 1995 and 2005? Wh

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