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Derivation : if S = Y - T - C then we can derive a relation for disposable income (Yd) which is given by :
Derivation :
if S = Y - T - C
then we can derive a relation for disposable income (Yd) which is given by :
- A.Yd= s ( I + C0)where s is MPS
- B.Yd= (I + G - T)/ swhere s is MPS
- C.Yd= I + C + G + X
- D.Yd=(I + c0)/ swhere s is MPS.
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Microeconomics Theory and Applications with Calculus
Authors: Jeffrey M. Perloff
3rd edition
133019934, 978-0133019933
