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Cards in this deck (6)
- 1Explain why the AD curve has a negative slope.1. The wealth effect
2. The interest rate effect
3. The international trade effect - 2Distinguish between the microeconomic concept of demand and the macroeconomic concept of aggregate demand.Aggregate demand refers to the economy and buyers as a whole, whereas microeconomic demand refers to singular buyers and sellers.
- 3Causes of changes in consumption spending.1. Consumer confidence
2. Interest rates
3. Wealth
4. personal income taxes
5. level of household indebtedness - 4Causes of changes in investment spending.1.Business confidence
2. interest rates
3. improvements in technology
4. Business taxes
5. corporate indebtedness
6. Legal/ institutional changes - 5Causes of changes in government spending.1. Political priorities
2. Deliberate efforts to influence aggreagate demand - 6Causes of changes in export spending minus import spending1. National income abroad
2. Exchange rates
3. level of trade protection
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- International Baccalaureate Economics Flashcards on Untitled, created by Judy Asman on 12/06/2016.
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- Judy Asman
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