Marginal Propensity of GDP
Not what you're looking for?
My answer:
I went to the lecture tab and found this on MPC and MPS: If we are overspenders, then our consumption exceeds our income, seeing minus saving! The more income we have, the more we can consume and the more we can save. The money we tend to spend out of additional income is called the Marginal Propensity to Consume, MPC. The money we tend to save out of additional income is called the Marginal Propensity to Save, MPS.
So with MPC, this is where we are spending more than our income.
Teacher question/follow up:
Take a look at the components of GDP expenditure approach over the past 5 years and share this number with us in class? This will help substantiate your post.
Can you help me with the teacher question/follow up?
The data needed is for the US
Purchase this Solution
Solution Summary
The components of GDP expenditures approach over the past five years is determined.
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.