2.2 aggregate demand and aggregate supply analysis Flashcards
1
Q
what is aggregate demand
A
total demand for a countries goods and services
2
Q
what is aggregate supply
A
total supply produced by a nation
3
Q
what causes the AD curve to shift
A
consumption
investment
government spending
imports/exports
4
Q
how is underlying economic growth represented
A
a rightward shift in the long run aggregate supply curve
5
Q
what is an economic shock
A
an unexpected event hitting the economy
can be both demand and supply side
