Aggregate Demand Flashcards

1
Q

Percentage of C

A

60% of AD

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2
Q

Percentage of I

A

14% of AD

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3
Q

Percentage of G

A

25% of AD

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4
Q

Percentage of (X-M)

A

1% of AD

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5
Q

What is net investment?

A

value of gross investment after depreciation

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6
Q

What do we say when price level goes down?

A

extension in AD

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7
Q

What do we say when price level goes up?

A

contraction in AD

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