Read the passage carefully and answer the questions based on the passage: Calculate various parameters of Aggregate Demand, Aggregate Supply and related concepts
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From the given table, identify the level of income, where Average Propensity to Save (APS) becomes zero: |
50 100 200 0 |
100 |
The correct answer is Option (2) → 100 APS = Saving / Income Saving = Income – Consumption, we compute APS = (Income – Consumption) / Income Now, let’s calculate APS for each income level:
APS becomes zero at Income = ₹100 crore
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