The formula to calculate the Average Propensity to Consume (APC) is:
\[ \text{APC} = \frac{\text{Total Consumption}}{\text{Disposable Income}} \]
The Average Propensity to Consume (APC) measures the fraction of disposable income that is spent on consumption. It is calculated by dividing total consumption by disposable income.
Let's assume your annual disposable income is $150,000, and your total consumption is $84,500. To calculate APC:
\[ \text{APC} = \frac{84,500}{150,000} = 0.563 \]
Therefore, you consume around 56% of your income.
