Topic 3 - (Economic growth only) Flashcards
1
Q
What is aggregate demand and its components?
A
AD = C + I + G (X - M)
2
Q
What are the injections in the economy?
A
Investment, government spending and exports (I + G + X)
3
Q
What are the leakages in the economy?
A
Saving, imports, and taxation (S + T + M)
4
Q
What is the formula for the simple multiplier?
A
5
Q
A
