Here is data on Consumption (Y) and Disposable Income (X). Calculate the coefficient b. Disposible Consumption Income 12,575 15,150 12,952 15,605 13,276 15,995 13,714 16,522 13,864 16,704

Q: Calculate equilibrium income for the AE function AE = 400+ 0.6Y. Show your calculations.

A: Aggregate expenditure is the sum of consumption, investment, government spending and net export.  At…

Q: b) households; automobiles

A: By definition, Consumption, in Economics, is the use of goods and services by households.…

Q: C= R60 million   I= R280 million   Goverment= R310 million   C = 0.75     1. Calculate the…

A: 1) AE = C+c(Y) +I+G       = 60+0.75(Y) + 280+ 310        = 650 + 0.75(Y)  Here out of total…

Q: Your research into a nation has yielded the following information: Autonomous expenditure (A) =…

A: GDP is the value of all the goods and services produced in an economy over a period of time within a…

Q: 5.5 Two types of consumers (workers and retirees) share a community with a polluting cheese factory.…

A: Part a: Aggregate Marginal Damage for the Public BadUnderstanding Damage: The problem gives us two…

Q: Explain the relationship between MPL and MC

A: Marginal Product of Labor (MPL): - it is the change in total production due to the employment of an…

Q: The value of MPS is 0.87 Find the value of MPC

A: Given, MPS= 0.87

Q: Yd Consumption Expenditure $ 0 $ 4,000 $ 10,000 $ 12,000 $ 20,000 $ 20,000 $ 30,000 $…

A: Income can either be consumed or saved. Consumption refers to the expenditure incurred on the…

Q: None

A: a) Flows (2) and (3) represent income.Flow (2) represents the income of households from the factor…

Q: The table gives disposable income (DI), consumption (C), and savings (S) data for the country of…

A: Disposable income is the income available with the household sector for the consumption purpose. The…

Q: Disposable Consumption income expenditure (€, thousands) (€, thousands) 200 220 300 300 400 380 500…

A: Disposable income refers to the income of households that is used to consume goods and services, and…

Q: Can MPC be negative or greater than 1? Why or why not

A: Marginal propensity to consume (MPC):  MPC measures the change in spending on consumption with the…

Q: Make a graph based off the following: Construct a consumption function from the data given here and…

A: Answer: Graphical presentation of the consumption function: According to the above figure, the…

Q: What is the equilibrium level of output (Y) in this economy? Planned Government Net Exports…

A: In the Keynesian model, also called  expenditure-output model,  demand plays a significant role in…

Q: Draw horizontal or downward sloping price-consumption curve and explain in detail with possible…

A: The price-consumption curve is the locus of all equilibrium points which shows the optimal…

Q: Which of the following are included in household consumption expenditures: fees levied (charged) by…

A: Households consumption expenditures includes only the expenses on food, clothing, housing,…

Q: Find the value of change in income if change in consumption is $600 and MPC is 0.67

A: According to the above given question, the information given is as follows:- Change in consumption =…

Q: Suppose you consume three goods, and you have the following expenditure function: E(Pa, Pys P, U) =…

A: Elasticity of demand is a measure of the responsiveness of the quantity demanded of a good or…

Q: Calculate consumption if APC is 0.88 and income is $400

A: The information being given is:- Average propensity to Consume = 0.88 Income = $400 Consumption = ?

Q: The slope of IC2 from A to B is: Good X 10 IC 8 ICz 10 12 Good Y 00

A: Indifference curve shows different combinations of two goods that give same level of utility.

Q: which is the most preferred level of individual’s choice for public expenditure relating it with…

A: Utility means the total satisfaction a consumer or individual gets by consuming a certain amount of…

Q: [31] Suppose we believe that increases in advertising increase a firm's profit, yet increases in…

A: Since you have posted multiple questions, we will provide the solution only to the first question as…

Q: Question 2 The Personal Consumption Expenditures Price Index (PCEPI) is design to reflect Oonly…

A: Consumer spending on goods and services is measured by private consumption, often known as personal…

Q: Define the term inventories?

A: Inventories refer to the stock of goods of a firm or business.

Q: Explain how the law of diminishing marginal utility helps in deriving the demand curve. Explain how…

A: The law of diminishing marginal utility states that the value of the good which is extra utility…

Q: : Substitute goods; Complementary goods; IRR

A: Substitute goods: These are the types of goods which are consumed in place of each other. Hence the…

Q: The variable shown on the vertical axis is _________  .   The units for the variable on the…

A: Figure illustrates the relationship between the two variables. This figure shows the relationship…

Q: Use the figure below to answer the following questions. Household expenditure (thousands of dollars…

A: We have given a figure, which has a straight line sloping upward and represents a positive…

Q: True/ False  Income and consumption has a direct relationship for the normal goods.

A: A normal good is a type of consumer good for which demand increases as the consumer's income…

Q: Calculate the Kari person's coefficient of correlation from the following data.

A: Karl Pearson's Coefficient of Correlation is a widely utilized numerical strategy wherein the…

Q: can you explain the microeconimics behind this

A: (a) Suggested Demand Function and ExplanationTo predict electricity consumption, we can use a simple…

Q: 40. Calculate equilibrium income when C= 140+ 0.80Y I= 160 G=200 X 150 %3D M=100. %3D

A: In the Income- expenditure model, the equilibrium is at the level of GDP where aggregate expenditure…

Q: Consider an economy that is characterized by the following equations C= 400 + 0 5 Vd I = 700 - 40001…

A: C= 400 + 0.5 Yd I = 700 - 4000i + 0.1Y G= 200 T= 200 (MP)d = 0.75Y - 7500i (M/P)' = 600

Q: In goa, india, the multiplier effect of iron export is calculated to be 1.62(Ta, 2003).calculate the…

A: The multiplier effect of iron export is calculated to be 1.62, thus, the impact of additional 1000…

Q: The change in consumption is $300 and change in income is $1000 Find the value of MPC

A: The marginal propensity to consume (MPC) measures the proportion of a unit of the consumer's income…

Q: Calculate the equilibrium income by using the consumption function formula. 1. Y =C 2. Y= C+I 3. Y =…

A: The equilibrium level of income is the income where all the production in the economy is equal to…

Q: The country of Bilgatzia, by decree of its supreme ruler Lord William, produces only two goods:…

A: Nominal and Real GDP: Gross domestic product calculated with the help of current year prices are…

Q: In the circular flow of income and spending: (a) Investment results in a decrease in the volume of…

A: Income: The term income refers to the amount that a person gets by providing his or her service. In…

Q: Discuss the six approaches to explaining consumption behaviours. (Include graphs and equations where…

A: Consumption refers to the use of goods and services by individuals and households. In economics,…

Q: At high levels of disposable income Multiple Choice both the APC and APS are high.

A: Disposable income is income minus tax. ---------------------------------------------- Average…

Q: Find change in consumption if MPC is 0.92 and the change in income is $2200

A: MPC is the marginal propensity to consume which shows the proportion of income spent on consumption.

Q: Question ind total consumption expenditure and isposable income of household.

A: Consumption Expenditure is the spending by households on goods and services, excluding new housing…

Q: (b) Estimate a log-log model using ordinary least squares and fully report the results. Be sure to…

A: Regression is a statistical method used to study the relationship between a dependent variable (or…

Q: Using the following equation calculate the equilibrium income C=100 + 0.5Y G=500 I=600 Export=60…

A: Given information: Consumption: C = 100 +0.5Y Government spending: G = 500 Investment: I = 600…

Q: If the ratio of consumption C to income Y is c, then the ratio of income to consumption is: a.…

A: The objective of the question is to find the ratio of income to consumption given that the ratio of…

Q: Calculate the value of MPC given that:- MPS = 0.55

A: # We get the relationship between MPC and MPS as:- MPS + MPC = 1