Page 1 - lesson note-Aggregate Demand and Related Concepts 41
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SAI INTERNATIONAL SCHOOL


                                                 ECONOMICS



                                                     Class-XII


                                                  CHAPTER 7


                              Aggregate demand and related concepts


                                                   (Module- 41)


               TOPICS TO BE COVERED-


               -Relationship between APC and APS

               -Relationship between MPC and MPS

               -Determinants induced investment

               Ex-ante savings and ex-ante investments

               -ex-post savings and ex-post investments

               -Meaning of un-employment.




               State the relationship between APC and APS.

                       The aggregate supply function is given as:
                                                         =    +   


                                                   =>       =    +  
                                                                 
                                                                    
                                                                
                                                   => 1 = +
                                                                    
                                                   =>        +        = 1

                                                           OR

                                                   =>        = 1 −       

                                                           OR

                                                   =>        = 1 −       


               There always exist an inverse relationship between APC and APS
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