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
How do you prepare the budget balance sheet?

1. In your own words explain the difference between a point estimate and an interval estimate of a parameter? Which is better? Why?  2. What information is necessary to calculat


Depreciation during the financial year  The Resources which are bought during the economical season and its determined that the Depreciation will be incurred on them @ 10% PA it

i need help it says for the tables of values determine appropriate veiwing window, create a scatter plot, write a function rule, and graph your funtion rule over your scatter plot


Employer's FICA tax rate for 2012 The employer's FICA tax amount for 2012 involves 1) the Public Protection tax amount of 6.2% of each individual's first $110,100 of income, inc

The Midwestern Manufacturing Company (MMC) is a large manufacturer of electrical generators.  The firm has experienced demand for their generators as shown below: Year  Demand

in my home work it is a balance sheet 12/31/2010 12/31/2009 accounts recievable 8000 10000 below it has letter a b c d e f-k wanting the letter with the explaination a

Cluster Sampling and Area Sampling: Cluster sampling involves grouping the population and then selecting the group or the cluster rather than individual elements for inclusion in t