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10 cards from this deck
AD=C+I+G+(X−M)AD = C + I + G + (X - M)AD=C+I+G+(X−M)
Consumption (C) at ~64% of GDP
Proportion of additional income spent on consumption
Always equals 1
Expenditure by firms on physical capital
Gross investment minus depreciation
Independent of variables in AD/AS models
Downward sloping (inverse to price level)
Lower prices increase purchasing power, raising demand
Change in overall price level
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