International Baccalaureate Economics (Aggregate demand - macro ) Flashcards on Aggregate demand , created by 09serukenyahol on 11/04/2015.
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Created by 09serukenyahol
over 9 years ago
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Created by 09serukenyahol
over 9 years ago
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Aggregate demand equation
Aggregate demand curve
Why does the aggregate demand curve slope downwards?
- competitiveness of goods abroad?
Is real income less or more?
Real income effect
Real balance effect
International substitution effect
- give an example
AD will shift when..
There are three factors that shift the AD curve
Fiscal policy
Monetary policy
Monetary policy pt 2
Exchange rates (XR)
AD = C +I +G = (X-M)
Changes in expectation
changes in household wealth
C
I
G
x
M
What causes changes investment?
