Th2.2: Movements and Shifts along AD Curve Flashcards
1
Q
What is a movement along the AD curve caused by?
A
change in prices, caused by in/deflation
2
Q
What is a shift of the AD curve caused by?
A
a change in any other variable
3
Q
What will a fall in the amount of consumption do?
A
reduce AD
4
Q
What does a fall in rate of rise of consumption mean?
A
consumption is still rising so AD will still increase by not as much
