Define the term aggregate demand
e) Explain the terms "marginal propensity to"
f) Suppose that the aggregate consumption function is given by the equation: C = 200+ 0.8YD, where C represents consumption and YD represents disposable income.
i. (Scenario: Aggregate Consumption Equation) If disposable income is Ksh500, Calculate the aggregate consumption
ii. (Scenario: Aggregate Consumption Equation) If disposable income is Ksh500, Calculate the autonomous consumption
g) Explain the term "equilibrium quantity"