suppose that permanent income ypt is calculated, Basic Statistics

+44 141 628 6080
[email protected]

suppose that permanent income ypt is calculated

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?

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Basic Statistics: suppose that permanent income ypt is calculated

Reference No:- TGS0205954

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Asked Questions

Investigate the cause of the recent werewolf attacks

create a temporary committee to investigate the cause of the recent werewolf attacks in major cities throughout the United States.

Describe marxist theory and psychology of addiction

Compare the Marxist Theory and Psychology of Addiction with the Realistic Theory and psychology of Addition.

Explain framers decisions in creating the constitution

Explain how the Articles of Confederation made the above scenario possible. Describe how this scenario influenced the framers' decisions in creating the Constit

Federal bureaucracy has to put up with a lot of red tape

Question: The Federal Bureaucracy has to put up with a lot of "red tape". What is "red tape" in regards to government?

What power of recognition when it comes to office president

Question: What is "power of recognition" when it comes to the office of the president? Question Select one

What right ordinance power give to the president

Question: What right does the Ordinance Power give to the president? Question Select one:

Analyze leadership of organization during particular event

Analyze leadership of an organization during a particular event or across a defined set of events. The assignment will assess your ability to identify

Request for Solution File

Ask an Expert for Answer!!

Basic Statistics: suppose that permanent income ypt is calculated

Reference No:- TGS0205954

Have a Question? (oR Write a Review)

Recent Questions Asked Basic Statistics

Q : there are five elastic properties needed to

Q : in mergers acquisitions or other relationships

Q : case study entitled exxon valdez oil spill

Q : the life-cycle hypothesis is based on the

Q : suppose that permanent income ypt is calculated

Q : suppose an individual has a lifetime earnings

Q : consider an economy specified by the

Q : now imagine that consumption is given

Q : let the real interest rate ir equal 5 percent and