Aggregate Demand (Edexcel A-Level Economics A): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is the formula for aggregate demand?
What is the formula for aggregate demand?
Which component is the largest in UK aggregate demand?
Which component is the largest in UK aggregate demand?
Consumption at 64.3% of GDP
If income rises from £100 to £110 and consumption rises from £80 to £87, what is the MPC?
If income rises from £100 to £110 and consumption rises from £80 to £87, what is the MPC?
If the marginal propensity to consume is , what is the marginal propensity to save?
If the marginal propensity to consume is , what is the marginal propensity to save?
How is net investment calculated?
How is net investment calculated?
Gross investment minus depreciation
According to Keynesian theory, what is the primary determinant of consumption?
According to Keynesian theory, what is the primary determinant of consumption?
Disposable income
What is the relationship between interest rates and investment?
What is the relationship between interest rates and investment?
Inverse - higher rates discourage investment
What happens to government benefit payments during recessions?
What happens to government benefit payments during recessions?
They increase as unemployment rises
Why does the aggregate demand curve slope downward?
Why does the aggregate demand curve slope downward?
Low prices increase purchasing power
What causes a shift of the AD curve rather than a movement along it?
What causes a shift of the AD curve rather than a movement along it?
A change in any component of AD