Chapter 4 Part 1 - AD,AS and Related Concepts

Economics Class 12
Macroeconomics

For Solving the Questions, we need to Remember following formulas

Income = Consumption + Savings

Y = C + S

APC = Consumption/ Income

APC = C/Y

APS = Savings/ Income

APS = C/Y

### Example 1

Calculate APC and APS from the following schedule.

 Income (Y) 100 200 300 Consumption (C) 80 120 180

### Note

Sometimes in Question

Disposable income is mentioned

Note that

Disposable income and Income (Y) are same things

Example 3

(i) The disposable income (Y) is ₹ 1200 crores and consumption expenditure (C) is ₹ 800 crores. Calculate the APC.

(ii) If saving is ₹ 500, out of an income of ₹ 5,000, how much is the APS?

(iii) If disposable income is ₹ 1,000 and consumption expenditure is ₹ 750, find out average propensity to save.

(iv) If income is ₹ 500 and saving are ₹ 100, calculate APC.

(v) When income rises from ₹ 1,000 to ₹ 1,100, saving rise by ₹ 30. Find out MPS and MPC.

(i) Disposable Income (Y) = 1200

Consumption expenditure (C) = 800

Calculate APC

(ii) Savings = 500

Income = 5000

Find APS

(iii) Disposable Income (Y) = 1000

Consumption expenditure (C) = 750

Find APS

(iv) Income = 500

Savings = 100

Calculate APC

### NCERT Questions

No questions in this part

### Other Books

#### Question 1

Calculate APC and APS from the following schedue:

 Income (Y) 100 200 300 Consumption ( C ) 80 120 150

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