Calculate permanent income, Basic Statistics

Assignment Help:

Suppose that permanent income, YP_(t) is calculated as the average of disposable income (YD_t) over the past 5 years, that is:

YP_(t)= 0.2(YD_t + YD_t-1 + YD_t-2+ YD_t-3YD_t-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., C_t and C_{t + 1})?

d. What is your short-run (1-year) and long-run MPC?

Related Discussions:- Calculate permanent income

Time series, time series use in indian economy

time series use in indian economy

Topic 4 Anova excel worksheet, systolic blood pressure in different age gr...

systolic blood pressure in different age groups. the following table contains a random sample of 40 women partitioned into three groups...

Confidence interval, 1. Provide an overview of the scenario and the variabl...

1. Provide an overview of the scenario and the variable involved. Include an explanation of why and how constructing the confidence interval adds value. I.e., why might this inform

Sequential sampling, Sequential Sampling: This is somewhat complex sample d...

Sequential Sampling: This is somewhat complex sample design where the ultimate size of the sample is not fixed in advance but is determined according to mathematical decisions on t

Audit, hi i need help for an auditing assignment

hi i need help for an auditing assignment

Frequency distribution for continuous data, examples

examples

Solve spss problem, SOLVE THE FOLLOWING PROBLEM IN SPSS. A college is cond...

SOLVE THE FOLLOWING PROBLEM IN SPSS. A college is conducting a study of its students' expectations of employment upon graduation. Students are sampled by class and major area of s

Pie diagram, A survey was conducted among the residents of Pune City, its s...

A survey was conducted among the residents of Pune City, its suburbs and the Pune Cantonment area. The following three pie diagrams show their respective preferences for living in

First quetion, what is accounting ?

what is accounting ?

Define overtime pay, Define Overtime Pay Extra time represents time wor...

Define Overtime Pay Extra time represents time worked in excess of 40 times weekly. Whether or not workers are bought overtime will depend on each worker's job obligations and

Write Your Message!

Name

Email id

Message

Verfication Code

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages