NCERT Solutions Class 12 Economics Aggregate Demand and Its Related Concepts

NCERT Solutions Class 12 Economics Aggregate Demand and Its Related Concepts with answers available in Pdf for free download. The NCERT Solutions for Class 12 Economics with answers have been prepared as per the latest syllabus, NCERT books and examination pattern suggested in Standard 12 by CBSE, NCERT and KVS. Solutions to questions given in NCERT book for Class 12 Economics are an important part of exams for Grade 12 Economics and if practiced properly can help you to get higher marks. Refer to more Chapter-wise Solutions for NCERT Class 12 Economics and also download more latest study material for all subjects

Aggregate Demand and Its Related Concepts Class 12 NCERT Solutions

Class 12 Economics students should refer to the following NCERT questions with answers for Aggregate Demand and Its Related Concepts in standard 12. These NCERT Solutions with answers for Grade 12 Economics will come in exams and help you to score good marks

Aggregate Demand and Its Related Concepts NCERT Solutions Class 12

NCERT Solutions Class 12 Economics Aggregate Demand and Its Related Concepts. NCERT book for Economics in class 12 is strongly recommened by teachers and the CBSE and NCERT boards. Please download the NCERT solutions for class 12 Economics free in PDF made by teachers of the best schools in India. These solutions are carefully compiled to give detailed understanding of the concepts and also steps of solutions. The NCERT solutions are free to download in pdf format. Please refer to the download link below to download the pdf file and also refer to other chapters and subjects to get the solutions to Economics NCERT book questions and exercises.

Question 1. What is marginal propensity to consume? How is it related to marginal propensity to save?
Answer: (i) The ratio of change in consumption (C) to change in income (Y) is known as marginal propensity to consume. It indicates the proportion of additional income that is being spent on consumption.
The sum of MPC and MPS is equal to one. It can be proved as under: We know: ΔY = ΔC + ΔS Dividing both sides by AY, we get ,ΔY/ΔY=ΔC/ Y + ΔS/ΔY or 1=MPC+MPS [ΔY/ΔY=1; ΔC/ΔY =MPC ΔS/ΔY=MPS] MPC + MPS = 1 because total increment in income is either used for consumption or for saving.

Question 2. What do you understand by ‘parametric shift of a line’? How does a line shift when its (i) slope increases and (ii) its intercept increases?
Answer: (i)when b increases from 0.5 to 0.75, then consumption curve (which is a straight line) pivots upwards. This is called a parametric  hift of a graph. It is shown in figure.
(ii)When C increases: It is the autonomous part of the consumption function. It graphically gives the intercept of the consumption curve. If increases from 2 to 5, there will be parallel upward shift in the consumption curves. It is shown in figure given.

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