Definitions section 1 Flashcards
1
Q
aggregate demand.
A
total spending on domestic goods and services in the economy
2
Q
aggregate supply
A
the total amount of goods and services supplied by firms within a country at a given pl
3
Q
LRAS
A
total amount of goods and services supplied by firms in a country at Yfe
4
Q
the multiplier effect
A
an initial injection into the economy causes a bigger final increase in RGDP
5
Q
accelerator effect
A
when an increase in gdp results in a proportionately larger rise in capital investment spending
