--%>

Difference between APC and MPC

Differentiate between APC and MPC. The value of which of them can be greater than another and when?

Answer:

APC is the average consumption stage of people. Which is equivalent to = APC = C/Y.
MPC is the addition in consumption due to rise in income that is, MPC = ΔC / ΔY.
APC can be greater than one whenever consumption is more than Income.

   Related Questions in Macroeconomics

  • Q : Microeconomic analysis emphasizing to

    Family member to macroeconomics, the microeconomic analysis: (w) was emphasized through economists prior to the Great Depression. (x) is related with the effects of extensive government policies. (y) focuses upon economic development

  • Q : Taxing imports-whats the problem ‘Must

    ‘Must a country which is less proficient at generating all goods use import controls to decrease imports from additional countries?’

  • Q : Supply use two market diagrams to

    use two market diagrams to explain how an increase in state subsidies to public colleges might affect tuition and enrollments in both public and private colleges?

  • Q : Fiscal and monetary policies in

    Explain the impact of changes in fiscal and monetary policies in curtailing inflation?

  • Q : Principles of macro economics what are

    what are the four supply factors of economic growth

  • Q : Public debt How does an internally held

    How does an internally held public debt differ from an externally held public debt?

  • Q : Okuns law Describe Okun's law ? Give an

    Describe Okun's law? Give an illustration of how it works.

  • Q : Full-employment Define the "

    Define the "full-employment" or "natural" rate of unemployment and give its approximate percentage rate as economists currently define it.

  • Q : Main concerns of microeconomics Can

    Can someone explain/help me with best solution about problem of microeconomics in economic... Main concerns of microeconomics would consist of: (w) rates of inflation. (x) consumer options. (y) rates of unemploymen

  • Q : Type of market when people cannot buy

    Whenever people can’t purchase all of a good they are willing and capable to pay for at present market price, there is surely a market: (1) Price ceiling. (2) Price floor. (3) Shortage. (4) Anomaly.  (5) Surplus. Please