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महाराष्ट्र राज्य शिक्षण मंडळएचएससी वाणिज्य (इंग्रजी माध्यम) इयत्ता १२ वी

Write Short Note On: Average Propensity to Consume

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

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

व्हिडिओ ट्यूटोरियलVIEW ALL [3]

संबंधित प्रश्‍न

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.


What is meant by aggregate demand?


Derive the two alternative conditions of expressing national income equilibrium. Show these equilibrium conditions on a single diagram.


State three measures to reduce inflationary gap.


Explain the concept of deflationary 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’?


Discuss the situation when aggregate demand is more than aggregate supply at full employment income level.


What are the determinants of Aggregate demand?


Write explanatory answer:

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


State with reason whether you agree or disagree with the following statements. (any Three) 

Aggregate demand  depand only on the consumption expenture. 


 Explain the following concepts or give definitions. 

Depreciation  


State whether the following statements are True or False with reason: 

Income earned from foreign investment is considered for aggregate demand. 


How will you derive the autonomous expenditure multiplier when the price of final goods and the rate of interest are given?


Fill in the blank with appropriate alternatives given below

The General Theory of Employment, Interest and Money was written by __________. 


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.


Answer the following question:
What are the determinants of Aggregate Demand (AD)?


Answer the following question:
What are the determinants of Aggregate Supply (AS)?


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

Aggregate demand depends only on the consumption expenditure.


Answer in detail.
Explain the determinants of aggregate demand.


Discuss the working of the adjustment mechanism in the following situations:

Aggregate demand is greater than the aggregate supply.


Answer the following question.
Describe the adjustments that may take place in an economy when ex-ante Aggregate Demand is greater than ex-ante Aggregate Supply.


What is meant by the “Effective Demand Principle” in the Keynesian theory of employment? Discuss using a schedule or a diagram.


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


Discuss the adjustment mechanism in the following situation :
Aggregate demand is lesser than Aggregate Supply.


The main component of aggregate demand is ______ 


On which concept does classical viewpoint depend?


In a closed economy, aggregate demand is the sum of ______.


Keynes theory is associated with ______ 


In case of an under-employment equilibrium, which of the following alternatives is not true?


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?


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. 


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