AD economics

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  • Created by: ishah
  • Created on: 10-05-13 22:29
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  • AD
    • total spending made on G&S in an economy
      • shows relationship of general price level & real GDP
    • C+I+G+X-M
    • shift AD - 1+ component affected
    • short-run - output affected
    • long-run - overall price affected
    • factors causing shift
      • change in expectation
      • monetary policy - interets rate
      • changes in fiscal policy
    • fluctuation - demand-side shocks
      • exchange rate
      • credit crunch
      • gov policy change
      • slump in housing market
      • change in share prices
  • economic events in world
    • factors causing shift
      • change in expectation
      • monetary policy - interets rate
      • changes in fiscal policy

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