Data for output (real income) and saving are presented in the table below. a. Fi

ID: 1094724 • Letter: D

Question

Data for output (real income) and saving are presented in the table below.

a. Fill in the missing numbers (gray shaded cells) in the table.

Instructions: In the table, round your answers to 3 decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.

     What is the value of the marginal propensity to consume?      .

     What is the value of the marginal propensity to save?      .

b. What is the break-even level of income in the table?

Instructions: Enter your answer as a whole number.

     Break-even level of income = $.

What is the term that economists use for the saving situation shown at the $240 level of income?   (Click to select)DissavingSaving.

c. For each of the following items, indicate whether the value in the table is either constant or variable as income changes:

     the MPS is (CONSTANT OR VARIABLE?) as income changes.

    the APC is (CONSTANT OR VARIABLE?) as income changes.

    the MPC is (CONSTANT OR VARIABLE?) as income changes.

    the APS is (CONSTANT OR VARIABLE?) as income changes.

Data for output (real income) and saving are presented in the table below. a. Fill in the missing numbers (gray shaded cells) in the table. Instructions: In the table, round your answers to 3 decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. What is the value of the marginal propensity to consume? . What is the value of the marginal propensity to save? . b. What is the break-even level of income in the table? Instructions: Enter your answer as a whole number. Break-even level of income = $. What is the term that economists use for the saving situation shown at the $240 level of income? (Click to select)DissavingSaving. c. For each of the following items, indicate whether the value in the table is either constant or variable as income changes: the MPS is (CONSTANT OR VARIABLE?) as income changes. the APC is (CONSTANT OR VARIABLE?) as income changes. the MPC is (CONSTANT OR VARIABLE?) as income changes. the APS is (CONSTANT OR VARIABLE?) as income changes.

Explanation / Answer

(a)

Working notes:

(1) Consumption = Output (Income) - Savings

(2) APC = Consumption / Income

(3) APS = 1 - APC

Therefore, following table is computed.

Marginal propensity to consume (MPC) = Change in consumption / Change in Income = 0.8

Marginal propensity to save (MPS) = 1 - MPC = 1 - 0.80 = 0.2

(b) Break-even income (when Income = Consumption and Saving = 0) = $260

When income = $240, Savings is negative, which is termed Dissavings.

(c)

MPS is Constant as income changes.

APC is Variable as income changes.

MPC is Constant as income changes.

APS is Variable as income changes.

GDP = DI Consumption Saving APC APS MPC MPS 240 244.000 -4 1.017 -0.017 260 260.000 0 1.000 0.000 0.800 0.200 280 276.000 4 0.986 0.014 0.800 0.200 300 292.000 8 0.973 0.027 0.800 0.200 320 308.000 12 0.963 0.038 0.800 0.200 340 324.000 16 0.953 0.047 0.800 0.200 360 340.000 20 0.944 0.056 0.800 0.200 380 356.000 24 0.937 0.063 0.800 0.200 400 372.000 28 0.930 0.070 0.800 0.200

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Data for department A for February 2012 are: Work in process beginning inventory

Data for population: weights of American women and men mu Sigma Women, age 20+ 1

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Data for output (real income) and saving are presented in the table below. a. Fi

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