3. Suppose Ali calculates his permanent income by adaptive expectations. In year 2020 Ali's permanent income was 64,000, and in year 20021 his consumption is 46,000. Assume short-run marginal to consume is 0.164, and long-run marginal to consume is 0.82. What is his actual income in year 2021?

3. Suppose Ali calculates his permanent income by adaptive expectations. In year 2020 Ali's permanent income was 64,000, and in year 20021 his consumption is 46,000. Assume short-run marginal to consume is 0.164, and long-run marginal to consume is 0.82. What is his actual income in year 2021?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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