NCERT Solutions for Class 12 Macro Economics Aggregate Demand and Its Related Concepts

NCERT Solutions for Class 12 Macro Economics Aggregate Demand and Its Related Concepts

NCERT Solutions for Class 12 Macro Economics Aggregate Demand and Its Related Concepts is designed and prepared by the best teachers across India. All the important topics are covered in the exercises and each answer comes with a detailed explanation to help students understand concepts better. These NCERT solutions play a crucial role in your preparation for all exams conducted by the CBSE, including the JEE.

NCERT TEXTBOOK QUESTIONS SOLVED

Ans. It is aggregate expenditure on ex-ante (planned) consumption and ex-ante (planned) investment that all sectors of the economy are willing to incur at each income level.

Ans. Aggregate supply is the total amount of money value of goods and services, (which is paid to the factor of production against their factor services) that all the producers are willing to supply in an economy

Ans. Consumption function expresses functional relationship between aggregate consumption and national income.

Ans. No, because even at the zero level of income, we will consume something i.e., autonomous consumption.

Ans. It is so because Keynes' psychological law of consumption states that when income increases, consumption also increases but at a lesser rate. So, increase in consumption is always less than increase in income, i.e., MPC=ΔC/ΔY is always less than one.

Ans. Yes, the value of average propensity to save can be negative when consumption is more than national income, i.e., before the break-even point.

Ans. The maximum value of marginal propensity to save is 1. It is only possible when MPC = 0, i.e., the entire additional income is saved.

Ans. The sum of APC and APS is equal to one, i.e., APC + APS = 1.

Ans. The sum total of MPC and MPS is equal to one, i.e., MPC + MPS = 1.

Ans. It refers to minimum level of consumption (i.e., C) , which is needed for survival, i.e., consumption at zero level of national income.

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