Economists observed the only five residents of a very small economy and estimated each ones consumer spending

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Economists observed the only five residents of a very small economy and estimated each one’s consumer spending at various levels of current disposable income. The accompanying table shows each resident’s consumer spending at three income levels.

a. What is each resident’s consumption function? What is the marginal propensity to consume for each resident?

b. What is the economy’s aggregate consumption function? What is the marginal propensity to consume for the economy?

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Economics

ISBN: 9781319181949

5th Edition

Authors: Paul Krugman, Robin Wells

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