3-Complete the accompanying table. Level of output and income (GDP = DI) $100 125 150 175 200 225 250 275 300 ConsumptionSaving APC APS MPC MPS $ -$5 0 5 10 15 20 25 30 35 (a) What is the break-even level of income? How is it possible for households to dissave at very low income levels? (b) If the proportion of total income consumed. decreases and the proportion saved increases as income rises, explain how the MPC and MPS can be constant at various levels of income.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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3-Complete the accompanying table.
Level of output
and income
(GDP = DI)
$100
125
150
175
200
225
250
275
300
ConsumptionSaving APC APS MPC MPS
$
-$5
0
5
10
15
20
25
30
35
(a)
What is the break-even level of income? How
is it possible for households to dissave at very low
income levels?
(b)
If the proportion of total income consumed
decreases and the proportion saved increases as
income rises, explain how the MPC and MPS can
be constant at various levels of income.
Transcribed Image Text:3-Complete the accompanying table. Level of output and income (GDP = DI) $100 125 150 175 200 225 250 275 300 ConsumptionSaving APC APS MPC MPS $ -$5 0 5 10 15 20 25 30 35 (a) What is the break-even level of income? How is it possible for households to dissave at very low income levels? (b) If the proportion of total income consumed decreases and the proportion saved increases as income rises, explain how the MPC and MPS can be constant at various levels of income.
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