 # Sandeep Garg Macroeconomics Class 12- Chapter 7: Aggregated Demand and Related Concepts

Sandeep Garg Class 12 Macroeconomics Solutions Chapter 7: Aggregated Demand and Related Concepts are explained by the expert Economic teachers from the latest edition of Sandeep Garg Macroeconomics Class 12 textbook solutions. We at BYJU’S provide Sandeep Garg economics class 12 Solutions to give comprehensive insight about the subject to the students. These insights help as a priceless benefit to students while completing their homework or while studying for their exams. There are numerous concepts in economics, but here we provide you with the solutions from Aggregated Demand and Related Concepts, which will be useful for the students to score well in the 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 (Y) ₹ Consumption (C) ₹ Savings (S) ₹ APC C/Y= APC APS S/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, how much will be the APC?

Ans: APC= 1 – APS

= 1 – 0.6

= 0.4

Question 3

If MPC is 0.75, how much will be the MPS?

Ans: MPS=1 – MPC

= 1 – 0.75

= 0.25

Question 4

If the saving function is S = 1 20 + 0.3Y, then what will be the value of MPC?

Ans: 0.3 indicates that MPS = 0.3.

So, MPC = 1 – MPS

= 1- 0.3

= 0.70

Explore link: Banking: Commercial Banks and the Central Bank

Question 5

What are the two kinds of propensities to save?

Ans: The two kinds of propensities to save are.

• Average propensity to save (APS)
• Marginal propensity to save (MPS)

Question 6

Mention the two components of aggregate supply.

Ans: The two components of aggregate supply are.

• Consumption
• Supply

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