2.2 Aggregate Demand Flashcards by Sagana Devadhas | Brainscape

Q

What is the formula for AD?

A

AD = C + I + G + (X-M)

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Q

What is Aggregate demand?

A

The total level of spending in the economy

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Q

Give the four reasons for the downward sloping AD curve

A

Income effect:

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Q

A

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