Components Of AD Impact On Economy Flashcards
(3 cards)
1
Q
How can an increase in exports impact economy
A
Increase growth and increase aggregate demand
Enhance productivity
Increased revenue profits
Injection and circular flow of income
2
Q
How can investment impact on economy?
A
Increase growth increased demand
LRAS increased quantity of capital increased
Injection and circular flow of income income
Increase productive capacity
3
Q
How can consumption impact economy? And list evaluation points.
A
Increased growth and increased AD
Big effect on economy
It depends how this consumption is financed and also depends on other factors 
