permanent income was 38,000, and year 2021 actual income is 41,000. Assume that, long-run marginal to consume is 0.90 and short-run tnarginal propensity to consume is 0 28. What is her consumption ?expenditure year 2021

permanent income was 38,000, and year 2021 actual income is 41,000. Assume that, long-run marginal to consume is 0.90 and short-run tnarginal propensity to consume is 0 28. What is her consumption ?expenditure year 2021

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter10: Keynesian Macroeconomics And Economic Instability: A Critique Of The Self Regulating Economy

Section: Chapter Questions

Problem 2WNG

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Question

Suppose Amal calculates.9
her permanent income by
adaptive expectations.
Year 2020 Amal's
permanent income was
38,000, and year 2021
actual income is 41,000.
Assume that, long-run
marginal to consume
is 0.90 and short-run
tmarginal propensity to
consume is 0 28. What is
her consumption
?expenditure year 2021

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