Chapter 10 Flashcards
1
Q
What is Aggregate Demand?
A
Aggregate Demand is the relationship between the general price level and the real expenditures in an economy. It is shpown as a schedule or a curve.
2
Q
What are aggregate demand demands?
A
Aggregate demand factors are: Consumption Disposable Income Wealth (other than wealth changes caused by price level) Consumer expectations Interest Rates
3
Q
What is Investment Demand?
A
Investment Demand is the relationship between the interest rate and the investment and depends on the real rate of return and real interest rate.
4
Q
What is Aggregate Supply?
A
Aggregate Supply is the relationship between the general price level and real output in an economy.
5
Q
Economic growth can be defined in two ways?
A
A percentage increase in an economy’s total output
