2.2/2.3 Aggregate Demand + Aggregate Supply Flashcards

1
Q

What is the formula of AD

A

AD= C+I+G+(X-M)

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2
Q

What 3 factors can affect Consumption

A

-Interest Rates
-Consumer Confidence
-Amount of Disposable Income
-Rate of Savings

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3
Q

What 3 factors affect Investment

A

-Interest Rates
-Business confidence
-Access to credit
-Government Regulations

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4
Q

What % is consumption in the UK economy

A

66%

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5
Q

What % is government spending in the UK economy

A

20%

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6
Q

What % is investment in the UK economy

A

10%

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