Flashcards

AD and AS Equilibrium

Maya Khangura Economics Macrp A-Level Inglês 10 flashcards

Flashcards do conjunto (10)

1What does AD =SRAS
2What would happen if the government increased corporation taxShift in of AS
Inflationary pressure
Decrease in National output
3What would happen if consumer incomes rise?Shift out of AD
Inflationary pressure
Increase in National Output
4What would happen if Business confidence in the UK reducesDecrease in AD
Less inflationary pressure
Decrease in National Output
5What does the extent in any increase in AD depend on?The level of current output in the economy
6At high levels of output what will an increase in AD lead to ?Small increases in growth and large inflationary pressure
7At low levels of output what will an increase in AD lead to ?Large increases in growth and little inflationary pressure
8How could AD increase beyond full capacity?Ins short run output will rise beyond full capacity but all this will do is push wages up
SRAS curve will shift left- back to LRAS curve
9What is the overall effect of AD increasing beyond full capacity?Prices rise
10What happens when LRAS increases?Potential output of the economy rises
Output goes up and prices go down
Negative output gap

Descrição: A-Level Economics Macrp FlashCards sobre AD and AS Equilibrium , criado por Maya Khangura em 23-02-2016.
Criado por: Maya Khangura · fev 2016
Atualizado: 24 mai 2016
Visualizações: 2
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