Economics Unit 2 - How the macroeconomy works 0.0 / 5 ? EconomicsThe macroeconomyASAQA Created by: anna_richardsCreated on: 05-03-16 20:05 At what point does macroeconomic equilibrium occur? AS = AD 1 of 10 What is aggregate demand? Total demand of all goods and services in an economy at a given time period 2 of 10 What is the equation for aggregate demand? C + I + G + (X - M) 3 of 10 What is aggregate supply? The total amount of goods and services that produces are willing and able to supply at a given price 4 of 10 What are the causes for a shift in the SRAS? Subsidies and Cost of production 5 of 10 What are the causes for a shift in the LRAS? (PIIL) Productivity, Investment, Innovation, Labour market 6 of 10 What is the multiplier effect? A change in 1 of the components of AD, leads to a multiplied final change in the level of GDP 7 of 10 What is the accelerator effect? Investment levels are related to the rate of change of GDP 8 of 10 What is saving? Income that is not consumed 9 of 10 What is investment? An addition to the capital stock 10 of 10
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