1. AD and AS

Question 1

Methods of measuring national income

Answer 1

1. total national income
2. total national expenditure
3. total national output

Question 2

factors that effect consumer spending

Answer 2

income
confidence
interest
tax
cost of living

Question 3

factors that effect investment

Answer 3

confidence
interest
availability of finance
growth

Question 4

factors effecting gov spending

Answer 4

fiscal policy
economic cycle
political cycle

Question 5

factors that effect X-M

Answer 5

exchange rate
economic growth
competitiveness
non price factors
tariffs

Question 6

factors that effect SRAS

Answer 6

price of materials
exchange rate
taxes and subsidies
wages

Question 7

factors effecting LRAS

Answer 7

population
tech
education
infrastructure

Question 8

factors that effect AD

Answer 8

exchange rate
tax
house prices
supply of credit
interest rate

Question 9

external shocks to AD

Answer 9

large change in exch rate
recession
slump in housing market