Econ study reveiw, test 3

Econ study reveiw, test 3 - 11/8/2007 10:05:00 PM The...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
08/11/2007 23:05:00 The 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 10 08/11/2007 23:05:00 Aggregate Demand: Movements along the aggregate demand curve  Caused by changes in the price level o Changes in investment, net exports, consumer spending (changes in  total spending) Aka “Aggregate quantity demanded” All change by a multiplied effect Shifts of the aggregate demand curve Caused by changes in things other than prices  o Consumption: Marginal prospensity to consume, wealth, taxes, transfer  payments, expectations, interest rates o Investment: Interest rates, business confidence, demand for products,  techonological changes o Government: Political debates and perceived needs o Exports/Imports: US/other countries’ real income, US/other countries’  prices Total spending will change by a multiple of change in consumption, investment,  government, or net export spending.  Change in initial spending/change in total spending Spending multiplier also occurs when prices change Aggregate Supply: Movement along the aggregate supply curve
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

Econ study reveiw, test 3 - 11/8/2007 10:05:00 PM The...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online