Calculate permanent income, Basic Statistics

Assignment Help:

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?

 


Related Discussions:- Calculate permanent income

Normal curve and the standard deviation, What is the relationship between t...

What is the relationship between the normal curve and the standard deviation? Name and explain three special features of a normal distribution

What is Appropriation , What is Appropriation A legal endorsement for an ...

What is Appropriation A legal endorsement for an organization to make expenses for particular requirements from particular options available or approximated to be available durin

.., what is probabality

what is probabality

Demographic characteristics , Data   If you look at the Variable vie...

Data   If you look at the Variable view (at top of screen - select View and select variables), you will see the names of variables and information about each one.  The lab

Amplification, Amplification is the process by which the magnitudes of the ...

Amplification is the process by which the magnitudes of the variable quantity is increasing, especially the magnitude of voltage, current or power, without changing any other quant

Sta, explain two charateristics.and two aapplication ofics statist

explain two charateristics.and two aapplication ofics statist

Allocation surrounding to accounts, Allocation surrounding to accounts An a...

Allocation surrounding to accounts An aspect of a lump-sum appropriation that is specific for expenses by particular government models and/or for particular requirements, actions,

Balance sheet-actual reserves , (a)   The bank's excess reserves are its ac...

(a)   The bank's excess reserves are its actual reserves less required reserves. Actual reserves are given as $450 from its balance sheet. Required reserves are given by the produc

Probability, There are 49 mice in a pet shop. 30 mice are white. 27 mice ...

There are 49 mice in a pet shop. 30 mice are white. 27 mice are male. 18 mice have short tails. 8 mice are white and have short tails. 11 mice are male and have short tails.

Write Your Message!

Captcha
Free Assignment Quote

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd