Re: Estimating the surplus\Doug's question

[joanna bujes <jbujes@xxxxxxxxx>]

Are there other numbers to tell us how much of this is comsumption to
physically survive?

Joanna

Doug Henwood wrote:

> Mike Ballard wrote:
>
> > --- Doug Henwood <dhenwood@xxxxxxxxx> wrote:
> > The MPC was something like 104%
> >
> > >  measured over the whole cycle. It's been something
> > >  like 99% since the early-2001 peak.
> >
> >
> > What does MPC stand for?
>
>
> Marginal propensity to consume. The percentage of growth in income
> which is consumed. For example if your income in year 1 was 10,000
> and your consumption 9,000, and in year 2 it was 11,000 and
> consumption 10,200, your MPC would be computed as:
>
> income growth: 11,000-10,000 = 1,000
> consumption growth: 10,200-9,000 = 1,200
> MPC = 1,200/1,000 = 1.2 or 120%.
>
> Doug