Calculate permanent income, Basic Statistics

Suppose that permanent income, YP(t) is calculated as the average of disposable income (YDt) over the past 5 years, that is:

YP(t) = 0.2(YDt + YDt-1 + YDt-2 + YDt-3 YDt-4)

Suppose further that consumption is given as

C = 0.9 YP(t)

a.  If you earned $20,000 per year for the past 10 years, what is your permanent income?

b.  Suppose that next year, (t + 1), you earn $30,000.  What is you new permanent income?

c.  What is your consumption this year and next year (i.e., Ct and Ct + 1)?

d.  What is your short-run (1-year) and long-run MPC?

 

Posted Date: 2/21/2013 8:08:58 AM | Location : United States







Related Discussions:- Calculate permanent income, Assignment Help, Ask Question on Calculate permanent income, Get Answer, Expert's Help, Calculate permanent income Discussions

Write discussion on Calculate permanent income
Your posts are moderated
Related Questions
I have 8 problems that I need help with. I will need to upload the files. Thanks

The following figure shows a histogram of the annual maxima of daily rainfall levels (in millimetres) recorded at Maiquetia international airport, Venezuela, for the years 1952 to

A testing organization is evaluating the effectiveness of sinus relief tablets, Relief and SineOut.  As part of the analysis the organization collects 44 sinus sufferers and random

Define block grant A federal grant that consolidates, for a wide reason or any type of purpose, funds previously awarded for a wide variety of activities.

Linear Power Supply Uses a transformer to convert voltage from the mains (wall outlet) to a different voltage. With a transformer present, almost any voltage can be obtained. If a

"A company of accountants has branches in five regions, Port Louis (PL), Curepipe (CPE), Beau Bassin (BB), Rose Hill (RH) and Quatre Bornes (QB). It employs the following number


Consider the manufacturing system presented in the article by Yu and Bricker (1993). The management would like to purchase new machine tools more reliable and more high accuracy

solution of problems based on coefficient of covariance

how can we construct a bivariate frequency distribution