Aggregate demand and supply

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Positive expectations
businesses expect the future sales and profits to improve due to factors like increased AD
1 of 9
negative expectations
businesses expect future sales and profits to be less due to factors like falling AD
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accelerator effect
the relation between the change in new investment and the rate of change of national income
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privatisation
sale of government owned assets to the private sector e.g. royal mail recently
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Keynesian
the view of John Maynard Keynes, a very influential UK economist who suggested how govts could cure mass unemployment
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classical view
economists who believed that recession and slumps would cure themselves
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long-run aggregate supply
the economy's productive capacity i.e. PPB
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natural rate of unemployment
the rate of unemployment that is consistent with a stable rate of inflation
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monetary policy committee
a committee of economists and central bankers who meet MONTHLY and decide whether or not to change the rate of interest to influence inflation.
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Other cards in this set

Card 2

Front

businesses expect future sales and profits to be less due to factors like falling AD

Back

negative expectations

Card 3

Front

the relation between the change in new investment and the rate of change of national income

Back

Preview of the back of card 3

Card 4

Front

sale of government owned assets to the private sector e.g. royal mail recently

Back

Preview of the back of card 4

Card 5

Front

the view of John Maynard Keynes, a very influential UK economist who suggested how govts could cure mass unemployment

Back

Preview of the back of card 5
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