Aggregate demand and supply 0.0 / 5 ? Economicsaggregate demand and supplyASAQA Created by: Tanya HaldipurCreated on: 12-04-14 15:45 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 2 of 9 accelerator effect the relation between the change in new investment and the rate of change of national income 3 of 9 privatisation sale of government owned assets to the private sector e.g. royal mail recently 4 of 9 Keynesian the view of John Maynard Keynes, a very influential UK economist who suggested how govts could cure mass unemployment 5 of 9 classical view economists who believed that recession and slumps would cure themselves 6 of 9 long-run aggregate supply the economy's productive capacity i.e. PPB 7 of 9 natural rate of unemployment the rate of unemployment that is consistent with a stable rate of inflation 8 of 9 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. 9 of 9
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