# Sandeep Garg Solutions Class 12: Chapter 7: Part B

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.

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There are numerous concepts in economics, but here we provide you with the solutions from aggregated demand and related concepts that 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 in (Y) â‚¹ Consumption in (C) â‚¹ Savings in (S) â‚¹ 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, then how much will be APC?

APC = 1 â€“ APS

= 1 â€“ 0.6

= 0.4

Question 3

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

MPS = 1 â€“ MPC

= 1 â€“ 0.75

= 0.25

Question 4

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

0.3 indicates that MPS = 0.3

So, MPC = 1 â€“ 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?

The two kinds of propensities to save are as follows:

1.Â  Average propensity to save (APS)

2. Marginal propensity to save (MPS)

Question 6

Mention the two components of aggregate supply.

The two components of aggregate supply are as follows:

• Consumption
• Savings

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1. Thank you

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