2.2/2.3 Aggregate Demand + Aggregate Supply Flashcards
1
Q
What is the formula of AD
A
AD= C+I+G+(X-M)
2
Q
What 3 factors can affect Consumption
A
-Interest Rates
-Consumer Confidence
-Amount of Disposable Income
-Rate of Savings
3
Q
What 3 factors affect Investment
A
-Interest Rates
-Business confidence
-Access to credit
-Government Regulations
4
Q
What % is consumption in the UK economy
A
66%
5
Q
What % is government spending in the UK economy
A
20%
6
Q
What % is investment in the UK economy
A
10%
