ATARMAxxing · VCE Economics revision notes
Aggregate Demand & Its Factors
Unit 3 AOS2 — Domestic macroeconomic goals
What this note covers
- Aggregate demand: the economy's total spending
- The five components: who is spending, and on what
- Factors affecting AD (1): disposable income, interest rates and confidence
- Factors affecting AD (2): the exchange rate and growth overseas
- The business cycle: AD in motion
- Worked application: rate rises, a sliding dollar and the data
6 sections · 14 key terms & formulas · 7 common mistakes
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