Chapter 27 - Characteristics Of Aggregate Demand Flashcards
1
Q
Another name for Aggregate Demand
A
National Expenditure
2
Q
How to calculate national expenditure
A
AD = C + I + G + (X-M)
3
Q
What does C stand for
A
Consumption
4
Q
What does I Stand for
A
Investments
5
Q
What does G stand for
A
Government spending
6
Q
What does (X-M) stand for
A
Exports minus imports
7
Q
What is aggregate demand
A
The total of all demand or expenditure in an economy
8
Q
What is the wealth effect
A
The change in consumption following a increase in income and wealth of a person
9
Q
How to calculate the prospensity to consume
A
Consumption / Income, the proportion of total income spent
