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Assume that consumption in the united states is $9,000 billion in 2009. if the mpc is 0.8 and disposable income increases by $1,000 billion in 2010, then the level of consumption in 2010 will be

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achulaksh achulaksh

Today at 9:14 AM

The level of consumption in 2010 will be $9,800 Billion.

What is the marginal propensity to swallow in this economy?

The marginal propensity to consume is: the change in consumer spending separated by the change in aggregate disposable income. The marginal tendency to consume equals the: ratio of the difference in consumer spending to the change in aggregate disposable earnings.

When inflation is a result of an increase in the price of elements of production the result is?

Cost-push inflation is inflation caused by an increase in prices of inputs like labor, raw material, etc. The inflated price of the factors of production leads to a decreased collection of these goods.

To learn more about marginal propensity, refer

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