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Write Short Note On: Average Propensity to Consume - Economics

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प्रश्न

Write Short note on:

Average Propensity to Consume

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उत्तर

Average Propensity to Consume (APC) expresses the propensity to consume in aggregate terms. It shows the ratio of consumption expenditure to the level of income. Algebraically,

`APC = C/Y`

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अध्याय 10: Determinants of Aggregates - Exercise 3 [पृष्ठ ९४]

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मायकल वाझ Economics [English] 12 Standard HSC
अध्याय 10 Determinants of Aggregates
Exercise 3 | Q 2.4 | पृष्ठ ९४

संबंधित प्रश्न

State the determinants of aggregate demand.


Given consumption curve, derive saving curve and state the steps taken in the process of derivation. Use Diagram.


Explain the concept of 'excess demand' in macroeconomics. Also explain the role of 'open market operation' in correcting it.


Explain the concept of ‘deficient demand’ in macroeconomics.


State components of aggregate demand.


Explain how government spending can be helpful in removing deficient demand.


What is meant by inflationary gap?


State three measures to reduce inflationary gap.


Name any two components of 'aggregate demand'.

 


Explain the role of Cash Reserve Ratio in removing an inflationary gap


Explain the role of 'Margin Requirements' in removing this deficient demand gap.


What is a ‘consumption function’?


Write explanatory answer:

What is Aggregate demand ? Explain the determinants of Aggregate demand.


 Explain the following concepts or give definitions. 

Depreciation  


Fill in the blank with appropriate alternatives given below

That part of income, which is not spent on consumption, is called __________. 


State whether the following statement is true or false.

The equality between aggregate demand and aggregate supply determines the equilibrium level of employment.


Define or Explain the following concept:

Aggregate Demand


Give reason or explain.

Aggregate demand is a positive function of the level of employment and output.


State with reason whether you agree or disagree with the following statement.

Aggregate demand depends only on the consumption expenditure.


State with reason whether you agree or disagree with the following statement.

Aggregate supply is influenced by the state of technology only.


Answer in detail.
Explain the determinants of aggregate demand.


Answer in detail.
Explain the equilibrium between Aggregate Demand and Aggregate Supply.


Write explanatory answer.
What is 'aggregate supply'? Explain the determinants of aggregate supply.


Answer the following question.
State and discuss the components of Aggregate Demand in a two-sector economy.


Choose the correct from given options
When aggregate demand is greater than aggregate supply, inventories


The difference between the Aggregate Demand at above full employment and Aggregate Demand at full employment is known as ______ 


Aggregate supply is equal to ______.


What is meant by Equilibrium income?


How is it determined by using Saving and Investment approach?


When the value of the currency falls as compared to other currencies, it is ______   


Which of the following statement is true?


It is seen that the private consumption expenditure, private investment expenditure, and ex-ante savings have reduced the ______ in the economy.


What is the circumstance when aggregate output is determined solely by the level of aggregate demand called?


If TR is 1,00,000₹ when ₹20,000 units are sold, then AR is equal to:


The equilibrium level of income/output is established when ______


Aggregate demand can be increased by:


When aggregate demand is greater than aggregate supply, inventories:


“In an economy ex-ante Aggregate Demand is less than ex-ante Aggregate Supply.”

Explain its impact on the level of output, income and employment. 


If planned savings exceeds planned investments in an economy, explain its likely impact on income, output and employment.


With reference to Simple Keynesian model, give the meaning of ex-ante demand.


If aggregate demand exceeds aggregate supply in a situation of full employment, what will be its impact on the economy?


With the help of a diagram, determine the equilibrium level of output and income by using Aggregate demand and aggregate supply approach.


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