1
Q
What is aggregate demand?
A
The total demand in an economy.
2
Q
What are the components of AD (4)?
A
Consumption (C)
Investment (I)
Government spending (G)
Net trade (exports-imports) (X-M)
3
Q
What is the formula for AD?
A
AD = C + I + G + (X-M)
4
Q
What is the largest component of AD?
A
Consumption
5
Q
Which way does the AD curve shift if AD rises?
A
Right
Macroeconomics
flashcards
Decks in class (41)
# Cards
-
Economic Growth10
-
Inflation18
-
Unemployment24
-
The Current Account and the Balance of Payments19
-
Aggregate Demand5
-
Consumption16
-
Investment16
-
Government Expenditure7
-
Net Trade15
-
Short and Long Run Aggregate Supply17
-
The Circular Flow of Income9
-
The Multiplier15
-
Causes of Growth8
-
Output Gaps5
-
The Trade Cycle8
-
Impacts of Economic Growth8
-
Macroeconomic Objectives16
-
Monetary and Fiscal Policy25
-
Supply-Side Policies15
-
Macroeconomic Conflicts and Trade-offs14
-
Globalisation18
-
Specialisation and Trade8
-
Pattern of Trade6
-
Terms of Trade9
-
Trading Blocs17
-
Free Trade Restrictions16
-
Balance of Payments13
-
Exchange Rate Systems27
-
International Competitiveness10
-
Absolute and Relative Poverty10
-
Inequality22
-
Measures of Economic Development7
-
Growth and Development24
-
Market-Orientated, Interventionalist, and other Strategies33
-
Financial Markets27
-
Market Failure in the Financial Sector15
-
Central Banks12
-
Public Expenditure21
-
Changes in Tax Rates16
-
Public Sector Finances17
-
Macroeconomic Policies Globally29
