Contemporary Factors - Aggregate Demand Flashcards
1
Q
Disposable Income
A
Trend: rising, however, still rising at a slower rate than inflation, so decrease in real wage growth.
2
Q
Interest Rates
A
2.60% after 6 increases
Update if there is another rise in the November meeting.
3
Q
Consumer Confidence
A
Trend: in 2021 and early 2022, consumers were optimistic (above 100), however it has fallen steadily for most of 2022.
4
Q
Business confidence
A
Trend: steady / recovered from lock down lows
5
Q
Exchange Rates
A
Trend: has remained flat over the last two years, depreciating in 2021 and then appreciating in 2022
6
Q
Rates of economic growth overseas
A
Trend: Improved in 2021, however, 2022 has not been great with many predicting a global recession
