Question
Empirical Problem 1: you will derive a consumption function for australia. a. Go to the Penn World Tables (http://rug.nl/ggdc/productivity/pwt). A) Click on penn World table
Empirical Problem 1: you will derive a consumption function for australia.
a. Go to the Penn World Tables (http://rug.nl/ggdc/productivity/pwt). A) Click on "penn World table" and then click on "excel" to download the most current penn World table file. Open the resulting file in excel and find australian data for:
rgdpan: Real GDP at constant 2011 national prices (in mil. 2011US$) |
rconna: Real consumption at constant 2011 national prices (in mil. 2011US$) |
b. make a scatterplot that has real Gross Domestic Income per capita on the X axis and total Consumption per capita on the Y axis. What is the relationship between consump-tion and income in australia? Visually, on average by how much would an increase of aU$10 billion in income affect consumption? Using your answer, compute the marginal propensity to consume for australia.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started