Aggregate demand and aggregate supply (OCR A-Level Economics): Quizzes
📚Quizzes
Practise the questions
12 questions from this quiz
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Practise the questions
12 questions from this quiz
What is aggregate demand?
What is aggregate demand?
Total demand for goods & services in economy
What is the Marginal Propensity to Consume (MPC)?
What is the Marginal Propensity to Consume (MPC)?
Proportion of additional income allocated to consumption
Which formula represents aggregate demand?
Which formula represents aggregate demand?
How is the aggregate demand curve depicted?
How is the aggregate demand curve depicted?
Downward-sloping curve
What does consumption (C) represent in AD?
What does consumption (C) represent in AD?
Household expenditure on goods & services
What does investment (I) in AD include?
What does investment (I) in AD include?
Firm spending on machinery & buildings
What are net exports (X-M)?
What are net exports (X-M)?
Value of exports minus imports
Which factor influences consumption?
Which factor influences consumption?
Consumer confidence
Which factor influences investment?
Which factor influences investment?
Business confidence
What is the wealth effect?
What is the wealth effect?
Lower prices raise real wealth & consumption
What is the interest rate effect?
What is the interest rate effect?
Lower prices cut money demand & interest
What causes a rightward shift in AD?
What causes a rightward shift in AD?
Rise in consumer confidence