On the Same Graph, Draw Learning Curves for Two Individuals

question 4

Essay

On the same graph, draw learning curves for two individuals that differ in their rate of learning showing a fast learner and a slow learner. Explain which curve represents the faster learner. Be sure to label both axes.

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Definitions:

MPS

Marginal Propensity to Save, which is the portion of additional income that a household saves rather than consumes.

APS

Assumes "APS" refers to "Average Propensity to Save," which is the proportion of total income or output that is saved rather than spent on consumption.

Induced Consumption

Refers to the portion of consumer spending that increases or decreases in response to changes in income.

Disposable Income

The pot of funds households have at their disposal for saving and spending, post-income tax.