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

1. What is Aggregate demand in Macroeconomics? [CBSE 2005C, 06, 09C, 10; AI 2015]

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.

2. What is Aggregate Supply in Macroeconomics?[CBSE 2015, 1995C, 2000; AI 1999]

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

3. What is consumption function?[CBSE 2008]

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

4. Can the value of APC be less than zero?

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

5. Why can value of MPC be not greater than one? [AI 1998]

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.

6. Can the value of average propensity to save be negative? If yes,when?[CBSE Foreign 2009]

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.

7. What can be the maximum value of marginal propensity to save?

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.

8. What is the relationship between APC and APS?

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

9. What is the relationship between marginal propensity to save and marginal propensity to consume?[CBSE Sample Paper 2010]

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

10. 10. Give the meaning of autonomous consumption. [CBSE 2009]

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.

Post your comments

Your mobile number will not be published.

View Comments

  • Jasmita Naik
  • 2020-September-15 12:24:24
Thank you very much.... Sir we need more help from you.... From other subject also we need like this questions.. So please sir kindly help us through uploading questions from science... Please sir
  • Jasmita Naik
  • 2020-September-15 12:24:22
Thank you very much.... Sir we need more help from you.... From other subject also we need like this questions.. So please sir kindly help us through uploading questions from science... Please sir
  • Mohini
  • 2020-September-01 09:39:49
Kitne time se
  • Rajudutta
  • 2020-August-29 09:08:57
Excellent and reliable apps
  • SALMAN
  • 2020-August-28 09:54:17
I WANT 2019 ENGLISH CBSC CLASS 3RD COURSE BOOK SYLLABUS AND SOLUTIONS
  • ULRICA
  • 2020-August-20 18:23:29
It
  • Rishabh Kumar
  • 2020-August-20 12:06:16
Please give me
  • Chandra shekar
  • 2020-August-17 18:16:29
Mandasa
  • p.harshavardhan
  • 2020-August-17 09:41:40
Ok
  • Charchit
  • 2020-August-15 09:24:13
Yes they are all question are main
  • Muthalagu
  • 2020-August-10 13:04:53
10 A class
  • Vadde madhu
  • 2020-August-09 13:05:59
Hallo
  • Veeranna
  • 2020-August-04 18:04:29
1:1 2004
  • Eslavath Kalyan
  • 2020-July-29 13:13:11
Komatipalli kesamudram
  • Gumma pavan kalyan
  • 2020-July-27 19:15:47
Hall ticket
  • Rajudutta
  • 2020-July-21 14:09:35
Excellent solutions and easy to learn.
  • VAGEESHA
  • 2020-July-17 12:42:54
NICE JOB
  • Syed sayeed saaqib
  • 2020-July-17 09:17:31
10 th class marks
  • P.fairoz khan
  • 2020-July-17 09:17:26
My SSC result
  • Gangavarapu Ashok Reddy
  • 2020-July-16 18:48:26
10 the class 2020 markas
  • Kusi Mani kumaR
  • 2020-July-16 13:12:26
2008125010
  • suhailhajam
  • 2020-July-16 13:12:18
plz kindly MCQ question s
  • suhailhajam
  • 2020-July-16 09:23:15
plz kindly MCQ question s
  • Koripalli. Bindu ramya
  • 2020-July-16 09:23:07
Inter results second year
  • Faizan
  • 2020-July-15 19:05:41
Beautiful
  • K. Umesh Chandra
  • 2020-July-15 19:05:34
Please release 10th results
  • Surra naidu
  • 2020-July-15 18:11:06
S me result
  • Lakpathi
  • 2020-July-15 18:10:58
Cbse resuls
  • S.sravani
  • 2020-July-15 18:10:50
CBSE 10th class result
  • Gundrathi Mohan
  • 2020-July-15 18:10:35
S me results
  • Gundrathi Mohan
  • 2020-July-15 12:58:21
S me results
  • suhailhajam
  • 2020-July-15 12:02:02
plz kindly MCQ question s
  • chandar
  • 2020-July-15 12:01:55
chan
  • suhailhajam
  • 2020-July-15 09:56:17
plz kindly MCQ question s
  • Kaustab Roy
  • 2020-June-29 08:44:49
I want to explore everything
  • Anup
  • 2020-June-16 19:51:29
Workbook unit 1 exercise solution
  • Khushdeep Kaur
  • 2020-June-15 09:19:07
I want pdf of MCQ class 10th C.B.S.E
  • Saddam
  • 2020-June-09 15:24:13
Kindly s me 10 maths mcq question answer
  • SADDAM
  • 2020-June-08 14:24:07
SEND ME
  • Bed prakash
  • 2020-June-01 09:44:40
Mera result
  • palla sivaram
  • 2020-April-21 13:55:32
haiii
  • Dany
  • 2020-March-07 16:10:18
NCERT Solutions Very Good I Like It
  • laxman
  • 2020-February-17 15:31:16
good
  • Bhanusam.manjula
  • 2019-August-17 12:35:47
Ssc 2007batch regular halltichet number
  • Ramu
  • 2019-July-31 12:35:35
NCERT Solutions
  • Kalamata gowriswari
  • 2019-June-17 17:57:24
Open 10th result 2019ap
  • Nagra rayal
  • 2019-May-17 10:35:13
Yappudu 10th reselts
  • Yanati nagarani
  • 2019-May-17 10:20:31
10th result
  • NAGESWARA
  • 2019-May-11 18:30:50
How can see ssc ap 10th results
  • m.kalyani
  • 2019-May-11 18:30:36
10th result
  • Naveen
  • 2019-May-10 13:17:17
10th results
  • Sri kesav
  • 2019-May-10 09:58:50
Please tell me the correct date of AP ssc results
  • K. Sudhakar
  • 2019-May-10 09:58:43
Plz 10th result
  • V pawan durga sriniva
  • 2019-May-07 14:24:49
Please 10th cbsc results
  • V pawan durga sriniva
  • 2019-May-07 14:24:39
Please 10th cbsc results
  • Charan
  • 2019-May-07 14:24:21
Result ssc
  • Ayesha
  • 2019-May-07 14:24:17
At. What time did exam results will come?
  • Vadithya suresh
  • 2019-May-04 14:44:06
Results
  • VANKUDOTH pavan kalyan
  • 2018-May-30 10:16:07
Results
  • C H VAISHAVI
  • 2018-May-29 18:18:18
Cbse result by name
  • varunsai sanne
  • 2018-May-29 16:00:17
Xth results 2018
  • varunsai sanne
  • 2018-May-29 15:44:24
Xth results 2018
  • Yalagala Srihari
  • 2018-May-29 13:04:27
Exam results
  • Alpesh Dhamale
  • 2018-May-29 11:36:50
Nice article my baby wait for exam result i hope this year pass percentage may be increase
  • m. mohan rao
  • 2018-May-28 11:03:47
hi, s me cbse 10 class 2018 results
  • akshaya
  • 2018-May-26 10:22:07
at what time resilts are going to today
  • Velupala Ashwarya
  • 2018-May-15 11:01:52
My result
  • Ramu
  • 2018-May-12 16:09:34
good information