question_answer

Complete the following table:

Income (Y)	Consumption [C]	Marginal Propensity To Save (MPS)	Average Propensity to Consume (APC)
0	15	-	-
50	50	-	-
100	85	-	-
150	120	-	-

Or Differentiate between aggregate demand and aggregate supply.

Answer:

Income(Y)	Consumption[C]	Saving (s)\[(S=Y-C)\]	Change in Savings \[(\Delta S)\]	Change in Income\[(\Delta Y)\]	MPS\[\left( \frac{\Delta S}{\Delta Y} \right)\]	APC\[\left( \frac{C}{Y} \right)\]
0	15	0 - 15 =(15)	-	-	-	\[15/0=\infty \]
50	50	50 -15 = 0	0-(-15)=15	50 ? 0  = 50	15 /50=0.3	50 /50=1
100	85	100 - 85 =15	15 - 0= 15	100 ? 50 =50	15 /50=0.3	85 /100=0.85
150	120	150-120 =30	30 - 15=15	150 -100 =50	15 /50=0.3	120/150=0.80

                                                                  Or Difference between aggregate demand and aggregate supply are:        

Basis	Aggregate Demand	Aggregate Supply
Meaning	Aggregate Demand(AD) refers to the total value of final goods and services that all sectors of the economy taken together are planning to ?buy? at a given level of income during a period of time.	Aggregate Supply (AS) means the value of final goods and service planned to be ?Produced? by all the production units in the economy taken together during a period of time.
Components	Components of AD are private consumption expenditure, private investment expenditure, government expenditure and net exports.	Components of AS are consumption expenditure and savings
Origin of the curve	AD curve originates from AD curve originates from Y-axis.	As curve originates from origin.