Page 5 - Home Assignment- AD and related concepts
P. 5
∆
National savings APS= ∆ ∆S MPS=
income ∆
1000 500 500 = 0.5 ------- -------- --------
1000
2000 800 800 = 0.4 1000 300 300 = 0.3
2000 1000
Diagrammatic: presentation pf APS and MPS: - Y
In the given diagram: -
1 S
At point A, APS = = B
1 2
A
1
2
At point B, APS = =
2 O X
!
−
2
∆
1 2
When the economy moves from point A to Point B then MPS = =
∆
1 2
