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econ final stuff: ag demand
aggregate demand and supply and other crap, oh my!
14 cards·by crayonwarrior
Ag demand shift: increase in interest rates
left
ag demand shift: increase in government purchases
right
Ag demand shift: personal income/business taxes
left
Ag demands shift: increase in households' expectations of their future incomes
right
Ag demand shift: increase in future profitability of investment spending
right
Ag demand shift: inc. in domestic GDP growth relative to foreign GDP growth
left
Ag demand shift: increase in exchange rate ($ value) relative to other currencies
left
An increase in the exchange rate will cause a left shift in agdemand because
imports rise and exports fall
An increase in household expect. of future incomes causes right shift because
consumption spending increases
An increase in firms' expectations of future profit. of investment spending shifts curve to
right because
investment spending increase
The growth rate of domestic GDP relative to foreign GDP causes a right shift because
imports will increase faster than exports
An increase in interest rates causes a left shift because
Consumption and investment spending reduced
An increse in government purchases shifts curve to the right because
Gov't purchases part of aggregate demand
An increase in personal income or business taxes shifts curve to the left because
consumption spending falls when personal taxes rise, investment falls when business taxes
rise