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15 cards from this deck
Total demand for goods & services in an economy
Proportion of additional income allocated to consumption
Proportion of additional income allocated to saving
Downward-sloping
Consumption, Investment, Gov spending, Net exports
Household expenditure on goods and services
Firm expenditure on capital goods
Government expenditure on goods and services
Value of exports minus value of imports
Inverse relationship
Lower prices increase real wealth, raising consumption
Lower prices reduce money demand & interest rates, boosting spending
Lower prices make domestic goods cheaper, raising exports
Changes in any AD component (C, I, G, X-M)
Increase in aggregate demand
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