This question relates to desired saving, and is based on the table in Question 3 . a.

Question:

This question relates to desired saving, and is based on the table in Question 3 .

a. Compute desired saving at each level of disposable income. Plot the saving function on a scale diagram. What is its slope?

b. Show algebraically that the average propensity to save plus the average propensity to consume must equal 1 .

Data from questions 3 Consider the following table showing aggregate consumption expenditures and disposable income. All values are expressed in billions of constant dollars.

image text in transcribed

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Macroeconomics

ISBN: 9780133910445

15th Edition

Authors: Christopher T S Ragan

See More Books

Question Posted: Mar 14, 2024 12:00 PM

See More Questions

Q1. You have identified a market opportunity for home media players that would cater for older members of the population. Many older people have difficulty in understanding the operating principles...
CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...
Consider the following table showing aggregate consumption expenditures and disposable income. All values are expressed in billions of constant dollars. a. Compute the average propensity to consume...
1. Prepare a schedule of cost of goods manufactured for Denim Bones for the year ended December 31, 2024. 2. Prepare an income statement for Denim Bones for the year ended December 31, 2024. 3. How...
A young girl sits at the edge of a dock by the bay, dipping her feet in the water. At the instant shown in FIGURE 11-62, she holds her lower leg stationary with her quadriceps muscle at an angle of...
Are direct cost and variable cost the same thing? Explain your answer. R3
P 14-9 Translation worksheet, parent accounting, consolidation San is a 90 percentowned foreign subsidiary of Par, acquired by Par on January 1, 2016, at book value equal to fair value, when the...
Pineapple Motor Company manufactures two types of specialty electric motors, a commercial motor and a residential motor, through two production departments, Assembly and Testing. Presently, the...
3) After all journalizing and posting to individual accounts for the month is complete, the columns are totaled. 5 Points True False
Relate the following newspaper headlines to shifts in the $C, S, I$, and $A E$ functions and to changes in equilibrium national income. a. "Revival of consumer confidence leads to increased...
Fill in the blanks to make the following statements correct. a. If actual national income is $200 billion and desired aggregate expenditure is $180 billion, inventories may begin to ________ , firms...
A leaders effectiveness depends on their followers ability. Which theory states this and why?
The transmitted energy expands out into space as it propagates at 3 GHz between the transmitter and the receiver over 30 km distance. Calculate the free space loss using a suitable formula and any...
What is the company featured in this episode of Undercover Boss? List 3 good professional activities that the CEO/president learned about their company by going undercover? List areas of the...
Assume there is a national lottery in the winning ticket is worth $10 million one winning ticket will be selected if there are 225 million tickets sold. What is the chance that a buyer of one ticket...
Description: Reference: Basu Thakur. (2015). PostcolonialTheory and Avatar (pp. 85-150,157-172). Bloomsbury PublishingUSAPre-Peer Paper Review for the Postcolonial Application Paper 1: Collecting...
NOT ASKING THE ACTUAL SHEAR STRESS. Please READ! Derive the shear stress distributed equation over the cross-section. Derive the equation and plot. 15 15 30 15 15 120 -90 20 0.5 m 72 kN 20 20 40 40...
Using random digit dialing, researchers call 1400 people and ask what obstacles (such as childcare) keep them from exercising. Identify the sampling technique used, and discuss potential sources of...
The Higher the time period of the financial security the higher the. ............... risk. O a. Maturity O b. Default and Maturity Oc. Default O d. Liquidity
Using Figure, calculate the price elasticity of demand when gasoline rises from $2 per gallon to $3 per gallon over each of the following time horizons: a. 1 month (from point A to point B) b. 6...
Table shows a short-run elasticity of demand for cigarettes. The same study suggested that the long-run elasticity of demand for cigarettes ranges from 1.0 to 2.5. Which is largershort-run or...
Some studies suggest that tooth extraction is an inferior good. Which measure of elasticity (price elasticity of demand, price-elasticity of supply, income elasticity, or cross-price elasticity)...
Which of the following statements is true? Financial measures tend to be lag indicators that report on the results of past actions. LA profit center is responsible for generating revenue, but it is...
Andretti Company has a single product called a Dak. The company normally produces and sells 8 0 , 0 0 0 Daks each year at a selling price of $ 5 6 per unit. The company s unit costs at this level of...
What are the major characteristics of plant assets? Choose one category of PP&E (land, land improvements, buildings or equipment) and describe the costs that may be capitalized with this asset.

This question relates to desired saving, and is based on the table in Question 3 . a.

Question:

Desired Disposable Consumption MPC Income (Yp) (C) == APC C/YD AC/AYD 0 150 100 225 200 300 300 375 400 450 500 525 600 600 700 675 800 750

Step by Step Answer:

Based on the information you provided and the image of the Aggregate Expenditure AE function and the 45 line heres an analysis for each question a Level of Actual National Income Y Desired Aggregate E...View the full answer

Macroeconomics

Students also viewed these Business questions