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Aggregate Demand
TOTAL SPENDING on new, domestically produced final goods and services
Aggregate Supply
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Why is the aggregate demand curve downward sloping? (3)
wealth effect
interest rates
international competitiveness
factors of AD curve: consumption (5)
consumer confidence
interest rates and cash flow
income tax
household indebtedness
wealth
factors of AD curve: investments (?)
business confidence
legislations/institutional changes
business taxes
interest rates
technology
spare capacity
corporate indebtedness