b) The AD curve

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Last updated 9:18 PM on 3/1/26
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7 Terms

1
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  • state the components of the AD curve

  • bvhvhgh

2
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  • state what a change in only AP causes

  • change in RGDP

  • movement along the AD curve

3
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  • state what a decrease in AP causes

  • state what an increase in AP causes

  • RGDP increases → extension in RGDP

  • RGDP decreases → contraction in RGDP

4
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  • define the determinants of AD

  • factors other than AP that cause a change in AD

5
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  • state the determinants of AD

  • consumption

  • investment

  • government expenditure

  • net exports

6
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  • state what a change in the value of the determinants of AD causes

  • change in AD

  • shift of the AD curve

7
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  • state what happens to the AD curve if AD decreases

  • state what happens to the AD curve if AD increases

  • shifts left

  • shifts right