AD/AS Shifts
Business confidence increases
AD increases
What does OCR stand for
official cash rate
Why does the government spend in times of recession
To grow the economy and increase standards of living
This flow is likely to increase if people are spending more money
Consumption (C)
This region of China is particularly known for its spicy food
Sichuan
Productivity increases
AS increases
What is the FIRST impact of changing the OCR
The change in the retail interest rates that banks pass on to consumers
What component is most likely to increase with expansionary fiscal policy
G
This flow represents the amount earned by households
Income (Y)
The "boston" is a famous model of this footwear brand
Birkenstock
Net exports decrease
AD decreases
Define contractionary monetary policy
Increasing the OCR to combat inflation
What is one method the government makes money with
Income tax (PAYE)
Goods and service tax (GST)
The sector that receives savings and funds investment
The financial sector
This island is separated from India by the Palk strait
Sri Lanka
Tourism increases
AD increases
Define Expansionary monetary policy
What decides if the government is running a deficit
If the gov spending exceeds revenue
The amount of MONEY earned from exports
Export receipts
The rapper behind the songs:
Hypnotize
Juicy
Mo money mo problems
The Notorious BIG
Biggie
Biggie Smalls
etc
The government builds high speed rail connecting the country
AD increases
AS increases
What is the impact on the AD/AS model of increasing interest rates
AD decreases
AS increases
If the government claims it will adopt expansionary fiscal policy in the next year, this could increase...
AD or Business confidence increasing (i) etc
The amount of MONEY spent on imports
Import payments
The country that is the location of Auschwitz concentration camp
Poland