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
IF PUNDIT 2 IS CORRECT, FEMROLE WILL HAVE (CIRCLE ONE)

note: Raw material costs 15 500 Direct Labor Costs: 14 750 Overhead costs 11 800 plant Finished Goods 37 500 Raw materials are charged into an order that is still in the process


Capital budgeting Techniques Financial commitment spending budget (or investment appraisal) is the planning process used to figure out whether a company long run purchases such

difference between historigram and histogram

Terry Co. manufactures a commercial solvent that is used for industrial maintenance. This solvent is sold by the drum and generally has a stable selling price. Due to a decrease in

Textbook The basic practice of statistics, 5th Edition by David S. Moore; Freeman EX:14.37, 14.38, 14.39, 17.5, 17.28a

Managers are very interested in how a consumer makes choice among alternatives. In this exercise, we ask you to consider the price of gasoline you may purchase to operate

what is historigram in statistics please give the problems and there solution in statistics as soon as possible

A, Explain how a person can be free to choose but his or her choices are casually determined by past event B , Draw the casual tree for newcomb's problem when Eve can't perfectl