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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?
Explain randomization,blocking and replications.
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Difference between historigram and histogram
Ask questionmethods of business forecasting #Minimum 100 words accepted#
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defference between historigrams & histogram
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