Expert economic teachers explain Sandeep Garg class 12 macroeconomics solutions chapter 7, Aggregated Demand and Related Concepts, from the latest edition of Sandeep Garg macroeconomics class 12 textbook solutions.
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There are several concepts in economics, but we've compiled a list of solutions from aggregated demand and related concepts that will help students do well on their board exams.
Sandeep Garg Solutions Class 12 – Chapter 7 – Part B
Question 1
Calculate APC and APS from the following schedule
| Income (Y) | 100 | 200 | 300 |
| Consumption (C) | 80 | 120 | 180 |
Solution:
| Income in (Y) ₹ | Consumption in (C) ₹ | Savings in (S) ₹ | APCC/Y= APC | APSS/Y= APS |
| 100 | 80 | 20 | 80/100=0.80 | 20/100=0.20 |
| 200 | 120 | 80 | 120/200=0.60 | 80/200=0.40 |
| 300 | 180 | 120 | 180/300=0.60 | 120/300=0.40 |
Question 2
If APS is 0.6, then how much will be APC?
Answer:
APC = 1 – APS
= 1 – 0.6
= 0.4
Question 3
If MPC is 0.75, then how much will be MPS?
Answer:
MPS = 1 – MPC
= 1 – 0.75
= 0.25
Question 4
If the saving function, S = 1 20 + 0.3Y, then what will be the value of MPC?
Answer:
0.3 indicates that MPS = 0.3
So, MPC = 1 – MPS
= 1 – 0.3
= 0.70
Question 5
What are the two kinds of propensities to save?
Answer:
The two kinds of propensities to save are as follows:
1. Average propensity to save (APS)
2. Marginal propensity to save (MPS)
Question 6
Mention the two components of aggregate supply.
Answer:
The two components of aggregate supply are as follows:
- Consumption
- Savings
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