the size of the MPC is assumed to be
MPC?
https://www.google.com/search?source=hp&ei=qWHCXLjROtKsswXxsJTwDg&q=+MPC+&btnK=Google+Search&oq=+MPC+&gs_l=psy-ab.3..0i131j0j0i131j0l3j0i131j0l3.19603.19603..21269...0.0..0.109.109.0j1......0....2j1..gws-wiz.....0.i48nCrbGgb4
Ms. Sue is right! What is MPC?
And my question is this -- what is ECO561?
In economics, the size of the MPC refers to the marginal propensity to consume. It measures the change in consumer spending resulting from a change in income.
To calculate the size of the MPC, you would need data on changes in consumer spending and changes in income. Here's how you can do it:
1. Gather data: Obtain data on the change in consumer spending and the change in income over a given period. This data can be obtained from household surveys, government reports, or economic databases.
2. Determine the change in consumer spending: Calculate the difference between the initial consumer spending and the final consumer spending. For example, if consumer spending increased from $1,000 to $1,200, the change in consumer spending would be $200.
3. Determine the change in income: Calculate the difference between the initial income and the final income for the same period. For example, if income increased from $5,000 to $6,000, the change in income would be $1,000.
4. Calculate the marginal propensity to consume: Divide the change in consumer spending (step 2) by the change in income (step 3). In our example, the MPC would be $200 divided by $1,000, which equals 0.2 or 20%.
Therefore, the size of the MPC is assumed to be 20% based on the data and calculations.