Macroeconomics McConnell Brue Flynn / Problems 1 & 2 Chapter 10 (Pg 219) I'm not very good with equations and math, I am looking for a review to make sure that I have completed this correctly?

1. Refer to the table

a. fill in the missing numbers in the table.

b. what is the break even level of income in the table? what is the term that economists uses for the saving situation shown at the $240 level of income?

c. For each of the following items, indicate whether the value in the table is either constant or variable as income changes; the MPS, APC, MPC and APS.

My Answers:

1. A)

Level of OutputConsumptionSavingAPCAPSMPCMPS

and Income

(GDP = DI)

$240 244$-4 1.02-0.02

260 2600 1.000.000.800.20

280 2764 0.990.010.800.20

300 2928 0.970.030.800.20

320 30812 0.960.040.800.20

340 32416 0.950.050.800.20

360 34020 0.940.060.800.20

380 35624 0.940.060.800.20

400 37228 0.930.070.800.20

APC = Consumption / Income

APS = 1 - APC

MPC = Change in consumption / Change in income

MPS = 1 - MPC

B.) Break even is income = consumption, $260.00. The term that economists use for the saving situation shown at the $240 level of income is dissaving; saving is negative.

C.) When the level of output and income change MPC and MPS are constant, APC and APS are variables.

Question 2: Suppose that disposable income, consumption and saving in some country are $200 billion, 150 billion and 50 billion, respectively. Next assume that disposable income increases by $20 billion, consumption rises by $18 billion and saving goes up by $2 billion. What is the economy's MPC? It's MPS? What was the APC before the increase in disposable income? After the increase?

My Answers:

MPC = $18/$20 = 0.9,MPS = $2/$20 = 0.1,APC before the increase in disposable income$150/$200 = 0.75,APC after the increase DI = $220, Consumption = $168,APC = $168/$220 = 0.764