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Macro Assignment 2

This document contains the responses to three questions on macroeconomic concepts. Question 1 involves completing tables to calculate marginal propensity to consume (MPC), marginal propensity to save (MPS), average propensity to consume (APC), and average propensity to save (APS) based on given income and consumption data. Question 2 involves completing a table to prove that MPC + MPS = 1. Question 3 involves completing a table to prove that APC + APS = 1. The document was submitted by Muhammad Wasi Choudhary for their Macroeconomics assignment on April 14, 2021.

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Wasi Choudhary
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32 views

Macro Assignment 2

This document contains the responses to three questions on macroeconomic concepts. Question 1 involves completing tables to calculate marginal propensity to consume (MPC), marginal propensity to save (MPS), average propensity to consume (APC), and average propensity to save (APS) based on given income and consumption data. Question 2 involves completing a table to prove that MPC + MPS = 1. Question 3 involves completing a table to prove that APC + APS = 1. The document was submitted by Muhammad Wasi Choudhary for their Macroeconomics assignment on April 14, 2021.

Uploaded by

Wasi Choudhary
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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WASI CHOUDHARY FA20-BBA-024

NAME: MUHAMMAD WASI CHOUDHARY


ROLL NO: FA20-BBA-024
ASSIGNMENT # 2
SUBJECT: MACRO ECONOMICS
SUBMITTED TO: MAAM SIDHRA AZAM
SUBMITION DATE: 14-APRIL-2021
WASI CHOUDHARY FA20-BBA-024

Question 1:
Complete the following tables.
Income and consumption remain same through all the tables of this question.

Y C S (Y-C)
1000 1000 0
3000 2500 500
5000 3900 1100
7000 5200 1800
9000 6400 2600
11000 7000 3000
13000 7200 5800

Y C ΔY ΔC MPC = Δ C/ Δ Y
1000 1000 --- --- ----
3000 2500 2000 1000 0.5
5000 3900 2000 1400 0.7
7000 5200 2000 1300 0.65
9000 6400 2000 1200 0.6
11000 7000 2000 600 0.3
13000 7200 2000 200 0.1

Y C S ΔS ΔY MPS= (Δ S/ Δ Y)
1000 1000 ----- --- -- --
3000 2500 500 500 2000 0.25
5000 3900 1100 1100 2000 0.55
7000 5200 1800 1800 2000 0.9
9000 6400 2600 2600 2000 1.3
11000 7000 3000 3000 2000 1.5
13000 7200 5800 5800 2000 2.9
WASI CHOUDHARY FA20-BBA-024

MPC MPS MPC+MPS

-- -- --
0.5 0.25 0.75

0.7 0.55 1.25

0.65 0.9 1.55


0.6 1.3 1.9

0.3 1.5 1.8

0.1 2.9 3

Y C APC APS APC+APS

1000 1000 0 0 0
3000 2500 0.83 0.16 0.99

5000 3900 0.78 0.22 1

7000 5200 0.74 0.25 0.99


9000 6400 0.71 0.28 0.99

11000 7000 0.63 0.27 0.9

13000 7200 0.55 0.45 1

Question 2:
Complete the table below and prove that MPS+MPC=1
MPC MPS MPC+MPS

0.58 0.42 1

0.63 0.37 1

0.01 0.99 1

0.70 0.30 1

0.82 0.18 1
WASI CHOUDHARY FA20-BBA-024

Question 3:
Complete the table below and prove that APS+APC=1
APC APS APC+APS
0.12 0.88 1
0.19 0.81 1
0.80 0.20 1
0.57 0.43 1
0.11 0.89 1
0.01 0.99 1

THANKYOU!!!!!

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