Economics - Function homework

Economics - Function homework - order to be able to read...

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C. function assignment: Using the equation C= a+bY, where a= consumption at 0 income, b = MPC, Y= income, use the following numerical values C= 100 + .8Y to calculate the information below. a- fill out a table showing the level of consumption and savings at different income levels b- continue the calculations by $600 beyond reaching equilibrium ( equilibrium will occur when C=Y, therefore if equilibrium is . .let’s say at $2000, then you will continue till $2600) c- On graph paper plot this consumption function. Make it as large as your graph paper will allow. We will be adding another function in class, so in
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Unformatted text preview: order to be able to read the information clearly you will need a large graph d-Using the horizontal axis, plot the savings function but only the positive values, that is do not plot when savings are negative. You should use the video taped lectures as well as chapter 12 text material (pages 290-292) The assignment is due Monday October 26 at 9:30 am. Income (Y) Level Of Consumption (C) 100 100 180 200 260 300 340 400 420 500 500 600 580 700 660 800 740 900 820 1000 900 1100 980...
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This note was uploaded on 11/14/2011 for the course ECON 220 taught by Professor Ramoo during the Fall '10 term at Diablo Valley College.

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