Studied by 2 people
Aggregate demand
the overall expenditure of goods and services of an economy over a given period of time at given price levels
Aggregate supply
total amount of goods and services produced in an economy at a given price level during a given period of time
causes of change in aggregate demand
Monetary policy changes: interest rates, money supply
Fiscal policy changes: government spending, taxation
Consumer confidence and expectations
External shocks: exchange rates, global economic conditions
Wealth effects: changes in asset prices, housing market
causes of change in aggregate supply
Technological advancements: increase AS
Changes in input prices: affect production costs
Government regulations: impact business operations
Exchange rates: influence export competitiveness
Natural disasters: disrupt production capabilities
Note 
Flashcard (46)