factors affecting the components of aggregate demand

Question 1

list the factors of consumption

Answer 1

interest rates

income tax rates

inflation expectations

consumer confidence

stage of the economic cycle

Question 2

list the factors of exports

Answer 2

stage of the economic cycle overseas

tariffs imposed by overseas government

our international competitiveness

exchange rates

Question 3

list factors of government spending

Answer 3

government commitments

employment level

stage of the economic cycle

size of the public sector

Question 4

list the factors of investments

Answer 4

levels of spare capacity in the economy

stage of the economic cycle

business confidence

profit levels

interest rates

Question 5

list factors of imports

Answer 5

tariffs here

exchange rates

our international competitiveness

stage of the economic cycle here