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
the first four moments of a distribution about the mean are 0,16,-64 and 162.what is the standard deviation ?


What is F2 Test,  X, Y Arithmetic Means  The above method of finding out regression equation is tedious. The calculations can very much be simplified if instead of dealing with th

Each month, the firm Cashco has 50% chance that an amount of $ 1,000 will be credited In its current account, and a 50% chance that the account is debited $ 1,000. As current accou

you are studying the relationship between the number of academic credit hours graduate students spent studying Multicultural Counseling Skills and their current clients' overall pe


Accounting is an art of recording Yes, we recognize upon that declaration because if we evaluate the primary features of the accounting program we will find that primary three p

The amount of time it takes the IRS to send a refund to taxpayers is normally distributed with a mean of 12 weeks and a standard deviation of 3 weeks. What proportion of the taxpay

Suppose the entire cola industry produces only two colas viz., Pepsi and Coke.  Given that a person last purchased Pepsi, there is 90% that his next purchase will be Pepsi.  Given

The dataset also contains a variable y , which is the dependent variable of interest, as well as x1 , x2 , x3 , x4 , x5 , and x6 , all explanatory variables that are potentially