3)With respect to the marginal benetit from vacations, suppose that in 2020 employees earned $ 50,000 in vacations and used half of that benefit. The other half will be used in 2021. Vacation spending for 2020 will be: A. $ 50,000 b. $ 25,000 c. $ 25,000 plus the amount they use in 2021 before the 2020 financial statements are released

3)With respect to the marginal benetit from vacations, suppose that in 2020 employees earned $ 50,000 in vacations and used half of that benefit. The other half will be used in 2021. Vacation spending for 2020 will be: A. $ 50,000 b. $ 25,000 c. $ 25,000 plus the amount they use in 2021 before the 2020 financial statements are released

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter1: Ten Principles Of Economics

Section: Chapter Questions

Problem 6PA

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TECHNICAL Suppose that permanent income is calculated as the average of income over the past five years – that is YP = (Y + Y-1 + Y-2 + Y-3 + Y-4 Suppose further that consumption is given by C = 0.9YP a. If you have earned $20000 per year for the past 10 years. What is your permanent income? b. Suppose that next year (period t + 1) you earn $30000. What is your new YP? c. What is your consumption this year and next year? d. What is your short run MPC and long run MPC? e. Assuming you continue to earn $30000 starting in period t+ 1, graph the value of your permanent income in each period using the initial YP equation provided above.
Google İLovePDF | Slgsi P. Login to BlackBoard äailö Free Remaining Time: 43 minutes, 35 seconds. * Question Completion Status: 1 2 3 4 6. Moving to another question will save this response. Question 2 In the year 2013 KSA's actual expenditure was billion Sr. O A. 820 О В. 855 O C. 19.0 O D.976 A Moving to another question will save this response.
3. Suppose we are in a society where the social rate of time preference is 5% per year. The discount rate of utility is 3.5% per year, and the elasticity of marginal utility of consumption is 1.25. A. What is the assumed growth rate of future consumption under this scenario? B. Now assume the social rate of time preference changes to 10% while all else stays the same. What is the assumed new growth rate of future consumption? C. What does a SRTP of 5% mean compared to a SRTP of 10%? D. Why does the growth rate of future consumption change from one scenario to the other? ( If you Answer allow the above I will upvot definitely . ) Thank you
3. Suppose we are in a society where the social rate of time preference is 5% per year. The discount rate of utility is 3.5% per year, and the elasticity of marginal utility of consumption is 1.25. A. What is the assumed growth rate of future consumption under this scenario? B. Now assume the social rate of time preference changes to 10% while all else stays the same. What is the assumed new growth rate of future consumption? C. What does a SRTP of 5% mean compared to a SRTP of 10%? D. Why does the growth rate of future consumption change from one scenario to the other? Answer C & D
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