In modern economics, such an indicator as the marginal propensity to consume is used. Its calculation is necessary to determine the country's need for a particular product. Moreover, the magnitude of the change in the cost of goods, the amount of imports and exports, as well as the total volume of production should be known.
Necessary
- - calculator;
- - the amount of change in total costs;
- - the amount of change in imports;
- - the amount of government spending;
- - amount of investment;
- - the amount spent on the production of products;
- - the value of the net national product.
Instructions
Step 1
To calculate the marginal propensity to consume, it is necessary to determine the total costs. Add up the consumption of specific products, investment, government spending, and net exports. The latter value is found by subtracting the amount of imports from the amount of exports.
Step 2
Determine the amount of the net national product, the value of which should be in equilibrium, that is, the total volume of production is equal to the total expenditures. As a rule, this indicator can be calculated by summing all costs among themselves.
Step 3
Determine the value of the multiplier, which is calculated by dividing the deviation from the sum of the net national product (it is found by subtracting from the NNP the total amount of the change, which is calculated by subtracting the smaller indicator from the larger value) by the amount of the original change in total expenditures.
Step 4
The marginal propensity to consume is defined as follows. Subtract the deviation from the net national product indicator from the change in total production costs. Multiply the result by the amount of the increase (decrease) in the NNP.
Step 5
The marginal propensity to consume should be calculated in order to determine the level of production. If the total costs are equal or almost equal to the amount of money that is needed to purchase a certain volume of products, then the level of production is in equilibrium.
Step 6
The calculation of the marginal propensity to consume products is necessary to determine the consumed share of the change in total income. As a rule, the value of the marginal propensity is less than one. If the indicator of the marginal propensity to save is known, then make up the proportion from which it will be seen that the values are inversely proportional to each other.
