Aggregate Demand

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total spending in our economy (AD = C + I + G + (X - M)
Aggregate Demand
1 of 9
the proportion of income that households devote to consumer expenditure
APC
2 of 9
a component of AD
Investment
3 of 9
AD will shift in this direction if imports increase
left
4 of 9
the proportion of additional income that is saved by households
MPS
5 of 9
In order to shift AD one of these needs to change
component
6 of 9
An influence of consumer expenditure
Inflation
7 of 9
proportion of additional income devoted to consumer expenditure
MPC
8 of 9
an influence on investment
interest rates
9 of 9

Other cards in this set

Card 2

Front

the proportion of income that households devote to consumer expenditure

Back

APC

Card 3

Front

a component of AD

Back

Preview of the front of card 3

Card 4

Front

AD will shift in this direction if imports increase

Back

Preview of the front of card 4

Card 5

Front

the proportion of additional income that is saved by households

Back

Preview of the front of card 5
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