Im stuck on this question Headıng 1StylesParagraph5. Consider the following table for the U.S. economy. (in millions of dollars)Disposable Income40,00045,00050,000Consumption32,50037,00041,500Year200020012002a. (1 pt) Using the data in the table above, calculate the Marginal Propensity toConsume (MPC). (Show work below)b. (0.5 pt) Interpret the value you calculated for MPC in part a.aDELL

MPC = Change in consumption / Change in disposable income = (37,000 - 32,500) / (45,000 - 40,000) =…

5. Consider the following table for the U.S. economy. (in millions of dollars) Consumption 32,500 37,000 41,500 Year Disposable Income 40,000 45,000 50,000 2000 2001 2002 a. (1 pt) Using the data in the table above, calculate the Marginal Propensity to. Consume (MPC). (Show work below)

5. Consider the following table for the U.S. economy. (in millions of dollars) Consumption 32,500 37,000 41,500 Year Disposable Income 40,000 45,000 50,000 2000 2001 2002 a. (1 pt) Using the data in the table above, calculate the Marginal Propensity to. Consume (MPC). (Show work below)

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter8: Aggregate Demand And The Powerful Consumer

Section: Chapter Questions

Problem 8DQ

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Im stuck on this question

Headıng 1
Styles
Paragraph
5. Consider the following table for the U.S. economy. (in millions of dollars)
Disposable Income
40,000
45,000
50,000
Consumption
32,500
37,000
41,500
Year
2000
2001
2002
a. (1 pt) Using the data in the table above, calculate the Marginal Propensity to
Consume (MPC). (Show work below)
b. (0.5 pt) Interpret the value you calculated for MPC in part a.
a
DELL

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