Between 2008 and 2009, real disposable income (in 2009 dollars) declined slightly (by $19 billion), owing to
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Between 2008 and 2009, real disposable income (in 2009 dollars) declined slightly (by $19 billion), owing to a recession. The decline in real consumption expenditures was far larger: $133 billion. Explain why dividing the two does not give a good estimate of the marginal propensity to consume.
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Dividing the two prices will give you a good estimate of the marginal propensity to ...View the full answer
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Related Book For 
Macroeconomics Principles And Policy
ISBN: 9781337794985
14th Edition
Authors: William J. Baumol, Alan S. Blinder, John L. Solow
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