Flashcards
Aggregate Demand
Flashcards do conjunto (13)
- 1DefinitionTotal Amount that will be spent on the country's output at different values of the price level in a given time period
- 2AD=Consumption+Investment+Government Spending+Net Export
- 3ConsumptionExpenditure by households on goods and services to satisfy current wants, such as spending on clothes and food
- 4Consumption is ....% of AD.65
- 5It is influenced by ......disposable income
distribution of income
wealth
availability of credit
interest rates
consumer confidence
goods and services available - 6InvestmentSpending on Capital Goods such as factories and machinery
- 7Affected by...Demand
-Changes in income
-Interest Rate
Supply
-Cost of capital goods
-Improvements in Technology
-Business Confidence
-Profit Level
-Taxes and Subsidies - 8Government SpendingHow Government spend Tax revenue on Social Security, health, education, and defence.
- 9Influenced by...-Income
-Market Failure
-Public opinion
-State of the economy - 10Net ExportsRevenue earned from selling exports and taking away import expenditure
- 11Influenced byIncome at home
Income Abroad
Relative prices
Relative quality - 12Rise in price level causes.... Fall in price level causes....contraction in AD
extension in AD - 13Increase in AD..... Decrease in AD....outward shift
inward shift
Informações
- Descrição
- A Level Economics FlashCards sobre Aggregate Demand, criado por Andrew Stonehouse em 29-11-2017.
- Criado por
- Andrew Stonehouse
- Visualizações
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