If you know the average propensity to consume you can determine the average propensity to save. How is that possible?
What will be an ideal response?
The average propensities sum to 1 (APC + APS = 1). Thus, if you know the value of one average propensity (e.g., APC), you can always figure out the other average propensity (e.g., 1 ? APC = APS).
Economics
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Which of the following economic variables is exogenous in the Three-Sector-Model?
a. Government spending on goods and services. b. Real GDP. c. GDP price index. d. Quantity of the domestic currency per time period. e. None of the above.
Economics
A firm has the following production relationship between labor and output, for a fixed capital stock.
According to the above table, what is the marginal product of the 5th unit of labor?
A. 4 B. 3 C. 5 D. 5.2
Economics