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Analysing the macro economy
AGGREGATE DEMAND (AD) The total of all the demand in an economy, from consumers,
investment, government expenditure and the balance between exports and imports. (C + I + G + X ­ M)

Consumption: Household spending on goods and services: largest component of AD. A lot…

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Structural Change: occurs when some economic activities are growing whilst others are declining. Traditional lines of production have
tended to decline whilst new products and technologies have found new and growing markets.

Knowledge economy: the situation in which intellectual skills, command of knowledge, understanding and ideas have all become


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