Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 14 : Aggregate Demand - Coggle Diagram
Chapter 14 : Aggregate Demand
Consumption
wealth
level of household indebtness
income tax
interest rate
consumer confidence
Investment
Interest Rate
business tax
level of corporate indebtness
technological changes
business confidence
Government Spending
Transfer payment
to pensioners, unemployed or disables
capital spending
the more the spending, the higher the AD, AD curve shift to the right
Net Export (X-M)
changes in exports
countries currency
if our currency is stronger, we will export less because our product is expensive in foreign country
trade policies
if importing country liberalised free trade (tariffs low), export increase
national income
if foreign income increase, we will export our product more because they demand more
inflation rate
if inflation rate in our country is high, our product is expensive in foreign country. Export less
changes in imports
national income
locals will buy more imported product if our national income is high, import increase
trade policy
if tariffs is reduced, imported goods is less expensive, import increase
exchange rate
if our money has high exchange rate, the imported product is less expensive, import increase
inflation
if inflation in foreign country high, we will import less because their product is expensive