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
who we complete accounting cycile

At a tennis tournament a statistician keeps track of every serve. The statistician reported that the mean serve speed of a particular player was 102 miles per hour (mph) and the st


Generally Accepted Accounting Principles-GAAP:  GAAP is an Americanized term for the accounting standards and procedures that need to be followed by companies while compiling their

Explain Bond discount The excess of the countenance worth of a bond over the price for which it is acquire or sold resulting from a disparity between the marketplace rate of inter


The elevator in the Math and Computer Building can stop at one of six ?oors. Four riders get on the elevator at the ?rst ?oor and the elevator heads up. Each rider picks a ?oor at

Binding studies were carried out in which heparin was immobilized on the surface of cuvettes. The pH dependence of HPRG binding to heparin was investigated and the results are show

If the regression line is drawn as Y = C + 1075x, when X was 2 and y was 239, given that the intercept was 11. Calculate the residual

Ghosh Ltd is considering expanding its business and has to decide between taking on Project A or Project B. Both projects have a life of four years. Equipment is expected to have