macro Econ context Flashcards
1
Q
ad-consumer spending
A
trump cuts taxes - increases
unemployment due to covid-decrease
2
Q
ad-investment
A
increase:china only country w positive output due to dual circulation strategy-investment moves from west to east
decrease-Brexit(2016)deters investment we narrowly missed a recession the year
3
Q
ad-government spending
A
increase-t levels (2020) allow for increased employment and AD
decrease-2010,greece high public debt to gap ratio-decreased spending contributed to negative economic growth-had to be bailed out by the eurozone
4
Q
ad-(x-m)
A
increase-2020-free trade agreement-smoother trade and investment
decrease-china great demand for yuan due to being only country w growth in 2020-reduces net exports and therefore growth
