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Aggregate Demand and Supply

Aggregate Demand and Supply. Aggregate Demand and Supply. Aggregate Demand (AD). Consumption Expenditure. Tax rates Wage increases Credit Interest rates Wealth Property Shares Savings Bonds. Investment Expenditure. Machinery Equipment Buildings Infrastructure. Government Spending.

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Aggregate Demand and Supply

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  1. Aggregate Demand and Supply

  2. Aggregate Demand and Supply

  3. Aggregate Demand (AD)

  4. Consumption Expenditure • Tax rates • Wage increases • Credit • Interest rates • Wealth • Property • Shares • Savings • Bonds

  5. Investment Expenditure • Machinery • Equipment • Buildings • Infrastructure

  6. Government Spending • Defence • Health • Social Welfare • Education • Foreign Aid • Regions • Industry • Law and Order

  7. Import Spending (negative) • Goods and services bought from abroad

  8. Export Earnings (Positive) • Goods and services sold abroad

  9. Key Variables

  10. Macroeconomic Policy

  11. Fiscal Policy • Government Income (taxes and borrowing) • Government Spending

  12. Monetary Policy • Interest Rates (Bank of England)

  13. Aggregate Supply (AS)

  14. Capacity of the Economy • Costs of Production • Technology • Education and Training • Incentives • Tax regime • Capital stock • Productivity • Labour Market

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