aggregate demand

Question 1

consumption is…

Answer 1

consumption is spending on consumer goods and services

Question 2

what is marginal propensity to Consume MPC

Answer 2

The change in consumer spending following a change in income.

Question 3

real disposable income:

Answer 3

income that is adjusted for inflation and after direct taxes and benefits

Question 4

employment and job security:

Answer 4

when the labour market is improving, confidence and incomes will improve

Question 5

household wealth:

Answer 5

a rise in wealth can increase consumer demand

Question 6

expectations:

Answer 6

economic uncertainty cause spending to fall, improving animal spirits will list demand

Question 7

interest rates

Answer 7

interest rates affect both the incentive to save and the cost of borrowing

Question 8

short run aggregate supply (SRAS) is…

Answer 8

the quantity goods & services that produces in an economy are willing and able to supply at a given level of prices.

Question 9

factors that causes a shift in aggregate supply

Answer 9

changes in recorces