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
what is newton''s law of motion & application?

Question: (a) 100 individuals applied for systems analyst positions with a large firm during the past year. 40 of them had some prior work experience (W), and 30 had a profes

Consider a multiple regression model Y=ß0+ß1X1+ß2X2+µ The sample data yields the following matrices: X’X= { ¦(33&0&0@0&40&0@0&20&60) } Y’X=¦((132&24&92)) ?(y-Y)2 =150 a. what

difference between histogram and historigram

what are the methods of sampling


received security deposits from tenant how does it will be shown in accounting equation

how can we construct a bivariate frequency distribution

Q. How to Choose a Sample? The way a sample is chosen is extremely important in all statistical studies. This is because, ultimately, all the inferences will be based on the s

How important do you think knowledge transfer and training will be to help in transitioning from GAAP to IFRS? Manager 1: Knowledge transfer is going to be extremely importan