EconExam2 Guide
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- Outline Factors that can cause aggregate supply to shift
- -an increase/decrease in government purchases -a reduction/increase in taxes -an increase/decrease in investor confidence -foreigners develop/lose a taste for American goods or aMericans develop/lose their taste for foreign goods -increase/decrease in money supply
- Define Consumption and explain what causes it to vary.
- Wealth, expectations of future prices & income, interest rates, income taxes.
- Define Investment and explain what factors cause it to vary.
- Interest rates, futures sales expectations, business taxes, new technology, Age and condition of existing capital.