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Aggregate Demand
Aggregate demand (AD) is the total demand for all goods and services produced in an economy
in a given price level and time period.
AD = C + G + I + (X ­ M)
C means consumer expenditure. This makes up the majority of AD in most…

Page 3

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income tax) are likely to increase total consumer spending.
Inflation can affect consumer spending. If consumers expect price rises, they may buy more
now.
Saving ­ this is not a component of AD but it influences it.
IM

1

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Page 5

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Increased real disposable income can result in households saving a higher proportion of income
­ their average propensity to save rises. Rising interest rates encourage saving by offering a
greater reward for it. Reduced consumer confidence or increased uncertainty of the future can
also result in increased savings. The age…

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rising crime and other threats may also increase government spending.
IM

2

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Page 8

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Net Exports
Real disposable income abroad affects net exports. An increased income abroad is likely to
increase exports due to the increased demand. The US is a major trading partner to the UK; if
incomes in the US rise, they will buy more goods and services ­ some of these…

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3

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Comments

davidsalter

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This 28 page document details AD, AS, macroeconomic indicators, government policy and international trade. It is an excellent resume that students can use as their notes or to create their own revision resources.

aashini14

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THIS IS GOLDEN

S1401615

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I'm resitting my AS F582 economics exam and I've legit been looking for something like this... this is absolutely heaven sent!!!

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Pages in this set

Page 1

Preview of page 1

Page 2

Preview of page 2
Aggregate Demand
Aggregate demand (AD) is the total demand for all goods and services produced in an economy
in a given price level and time period.
AD = C + G + I + (X ­ M)
C means consumer expenditure. This makes up the majority of AD in most…

Page 3

Preview of page 3
income tax) are likely to increase total consumer spending.
Inflation can affect consumer spending. If consumers expect price rises, they may buy more
now.
Saving ­ this is not a component of AD but it influences it.
IM

1

Page 4

Preview of page 4

Page 5

Preview of page 5
Increased real disposable income can result in households saving a higher proportion of income
­ their average propensity to save rises. Rising interest rates encourage saving by offering a
greater reward for it. Reduced consumer confidence or increased uncertainty of the future can
also result in increased savings. The age…

Page 6

Preview of page 6
rising crime and other threats may also increase government spending.
IM

2

Page 7

Preview of page 7

Page 8

Preview of page 8
Net Exports
Real disposable income abroad affects net exports. An increased income abroad is likely to
increase exports due to the increased demand. The US is a major trading partner to the UK; if
incomes in the US rise, they will buy more goods and services ­ some of these…

Page 9

Preview of page 9
3

Page 10

Preview of page 10

Comments

davidsalter

Report

This 28 page document details AD, AS, macroeconomic indicators, government policy and international trade. It is an excellent resume that students can use as their notes or to create their own revision resources.

aashini14

Report

THIS IS GOLDEN

S1401615

Report

I'm resitting my AS F582 economics exam and I've legit been looking for something like this... this is absolutely heaven sent!!!