4: Aggregate Expenditure Model Flashcards
1
Q
Factors Affecting Consumption
A
- Disposable Income
- IR
- Inflation Rate
- Wealth and Debt
- Expectations
2
Q
Factors Affecting Investment
A
- Profitability
- IR
- Government Policies
- Expectations
3
Q
Factors Affecting Government Spending
A
- Political Stance
- Shocks
- Demographics
- Healthcare Cost
- Tax Revenue
4
Q
Factors Affecting Saving
A
- Real IR
- Consumer Confidence
- Existing Level of Debt or Wealth
- Inflation