Th2.4: Increasing Aggregate Demand and Supply Flashcards
1
Q
What differs between micro and macro economics regarding demand and supply?
A
micro - any factor which affects demand would not affect supply
macro - a factor which affects AD can easily affect AS
2
Q
Give an example of this
A
investment - increase AD but could also increase LRAS as firms can produce more if they have more machines e.t.c
