Aggregate Demand Flashcards
1
Q
Aggregate demand formula
A
C+I+G+(X-M)
2
Q
Changes in consumption factors (5)
A
Income taxes, interest rate changes, wealth changes (house price/value of shares changing), consumer confidence, household debt
3
Q
Investment
A
Addition of capital stock
4
Q
Changes in investment factors
A
Interest rates, company taxes, technology changes, business confidence/future expectations, company debt
5
Q
Government expenditure formula
A
Net exports - (exports less imports - (X-M)
6
Q
Export changes depend on
A
Overseas incomes, exchange rates, trade policies, relative inflation rates
7
Q
Import changes impacts
A
Domestic income, exchange rates, trade policies, relative inflation rates
8
Q
Why would an AD curve shift?
A
If any factors that affect aggregate demand change
