question archive The consumption function in country X is given by the following equation: C=50 +0
The consumption function in country X is given by the following equation: C=50 +0
Subject:EconomicsPrice: Bought3
The consumption function in country X is given by the following equation: C=50 +0.9Y Where You is permanent disposable income and Y, = 0.5(Ya+Y4-1). Ya and Ya-1 denote disposable income in the present and previous years respectively. The data on Ya are given in the table below Year 2 $ 1000 1000 200 1 200 1.400 1 400 0 . . Hind Y and consumption levels in years from 1 to 5 [2 marks] What is the long-run marginal propensity to consumer What is the short-run marginal propensity to constime in years 2 and 12 The short-run marginal propensity to consume in years 3 and 5 cannot be calculated. Why? .
