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Introduction to Aggregate Demand
Transcript of Introduction to Aggregate Demand
The total demand for goods and services in an economy at a given price level
Government Spending - Taxation
An increase in any of these is an 'injection'
Consumption counts for roughly 65% of AD
Mind your P's and Q's!
article "It's Aggregate Demand, Stupid" and answer the following:
1. What was the root of the problems faced by the US in 2011?
2. What does the author suggest should be done to alleviate the situation?
Draw a picture or make up a rhyme to help you remember the components of AD...
Discuss reasons for the dips in UK GDP growth (12)