Unit 2 revision note Word Scramble
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Question | Answer |
AD=C+I+G+(X-M) | C=consumer spending I=Investment G=Government spending (X-M)=net exports |
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 |
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. |
Factors affecting investment | 1.Accelerator effect 2.interest rate 3.existing levels of spare capacity 4.corporation tax |
Factors affecting government spending | 1.political stance(austerity or spending) 2.time to next election |
Factors affecting net exports | Exchange rate UK inflation compared to other countries productivity |
Created by:
samfisher2013
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