Aggregate Demand
C + I + GS + (X-M)
What is the equation for AD?
What is LRAS?
In June 2026, the US House of Representatives invoked the War Powers Resolution in an attempt to direct President Trump to remove US armed forces from hostilities in this Middle Eastern country.
What is Iran?
When a country has a lower opportunity cost in production compared to another country
What is comparative advantage?
Perfectly inelastic
What is it called when a change in price has no change in quantity demanded?
Multiplier Effect
What is it called when the final change is greater than the initial injection?
Technology, factors of production, resources, efficiency, productivity
What factors are affecting LRAS?
Public health officials in the Democratic Republic of the Congo reported over 300 confirmed cases of this highly lethal viral disease in June 2026.
What is Ebola?
A tariff
What is a tax on imported goods called?
Negative Externality
What is it called when an economic transaction has an unintended negative external cost?
Contractionary monetary policy
What is the policy intervention for lowering AD in order to curb inflation?
PPF
Which model shows the LRAS in another form?
Australia’s economic recovery got a major boost after Beijing finally lifted its multi-year, punitive trade tariffs on this premium Aussie alcohol.
What is wine?
Double transaction system and free floating AUD
Why does the BOP sum to 0?
Cost Push Inflation
What is it called when inflation is caused by rising AS?
What would change the multiplier effect?
An increase in SRAS and increase in LRAS
Describe the effect of a rise in productivity on AD/AS.
To combat sticky core inflation, this institution held the cash rate steady at 4.35%, keeping borrowing costs tight for homeowners.
What is RBA?
Commodities
What has the biggest effect on Australia's TOT/ Exchange Rate?
Interest rates, confidence, expectations, income levels, availability of credit, wealth
What are the factors affecting consumption?
A contractionary gap
What is called when SR ADAS equilibrium is to the left of LRAS?
Despite softening economic growth, the federal government managed to scrape together a third consecutive multi-billion-dollar one of these.
What is budget surplus?
When a foreign investor owns over 10% of a company
Foreign direct investment