2.4.3 Flashcards
1
Q
When does equilibrium national income occur?
A
When injections = leakages
2
Q
When does equilibrium occur?
A
Aggregate demand = aggregate supply
3
Q
An increase in aggregate demand causes what?
A
Expansion of aggregate supply and higher equilibrium level of national output
4
Q
What will an outward shift of aggregate demand do?
A
Bring about a cyclical rise in output and employment.
5
Q
An inward shift in aggregate demand causes what?
A
Contraction of aggregate supply and a lower equilibrium level of national output
