Aggregate Demand
- Created by: hattie.coley
- Created on: 15-05-17 12:38
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- Aggregate Demand
- AD Shocks
- Unexplained events that cause a change in AD
- Causes:
- Capital Investment Boom e.g. construction
- Exchange Rate Fluctuations that affect export demand
- Consumer Boom Abroad in a country thats a major trading partner
- Boom or Slump in a specific market
- Unexpected cut or rise in interest rates
- Interdependence: shocks have a bigger impact
- AD Shocks
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