unit 2 detailed notes
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
Help!
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AD=C+I+G+(X-M) | C=consumer spending
I=Investment
G=Government spending
(X-M)=net exports
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factors affecting consumer spending | 1.Real income
2.interest rates
3.wealth effect
4.consumer expectations,
expected inflation encourages spending
expected deflation encourage delayed purchase
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Factors affecting savings | 1.Interest rates
2.Real disposable income
3.expectations
uncertainty about future(e.g low job security)makes households save more
4.
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Factors affecting investment | 1.Accelerator effect
2.interest rate
3.existing levels of spare capacity
4.corporation tax
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Factors affecting government spending | 1.political stance(austerity or spending)
2.time to next election
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Factors affecting net exports | Exchange rate
UK inflation compared to other countries
productivity
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Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
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Created by:
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