Aggregate Demand Flashcards
1
Q
formulae
A
C + I + G + (X - M)
2
Q
what do they all stand for?
A
Consumption/Consumer Spending Investment Government eXports iMports
3
Q
what effects C?
A
income, interest rate, taxation and future expectations.
4
Q
what effects I?
A
corporation tax, business confidence, interest rates and spare capacity.
5
Q
what effects G?
A
tax receipts and business cycle.
6
Q
what effects X and M?
A
exchange rates, protectionism and quality
