Question | Answer |
Aggregate Demand Formula | AD=C+I+G+(X-M) |
3 things that affect Domestic Consumption | 1. Consumer Confidence 2. Personal disposable income 3. The availability of credit |
3 things that affect business Investment | 1. Business Confidence 2. The availability of credit 3. Business Profits |
What affects Government Spending? | 1. Political orientation of the party in power 2. Size of debt and deficit |
What is the Balance of Payments? | The amount of goods that a country Imports taken away from the amount that a country Exports |
What affects the Balance of Payments? | 1. The ability of domestic producers to produce goods 2. The exchange rate 3. The quality of foreign and domestic goods |
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