Description of this paper

Eastlandia experienced large fluctuations

Description

solution


Question

4. From 2003 to 2008, Eastlandia experienced large fluctuations in both aggregate consumer spending and disposable income, but wealth, the interest rate, and expected future dispensable income did not change. The accompanying table shows the level of aggregate consumer spending and disposable income in millions of dollars for each of these years. Use this information to answer the following question.;Year Disposable income (Millions of dollars) Consumer spending (millions of dollars);2003 $100 $180;2004 350 380;2005 300 340;2006 400 420;2007 375 400;2008 500 500;a) Plot the aggregate consumption function for Eastlandia.;There;b) What is the marginal propensity to consume? What is the marginal propensity to save?;There;c) What is the aggregate consumption function?;There

 

Paper#24671 | Written in 18-Jul-2015

Price : $22
SiteLock