Aggregate Demand Flashcards
1
Q
Percentage of C
A
60% of AD
2
Q
Percentage of I
A
14% of AD
3
Q
Percentage of G
A
25% of AD
4
Q
Percentage of (X-M)
A
1% of AD
5
Q
What is net investment?
A
value of gross investment after depreciation
6
Q
What do we say when price level goes down?
A
extension in AD
7
Q
What do we say when price level goes up?
A
contraction in AD