It is the total level of real planned expenditure on goods and services in a country in.a given time period

It is the total amount of goods and services that all firms in the economy are willing to supply at a given price level in an economy in a year

It is the total level of real planned expenditure on goods and services in a country in.a given time period

Factors that affect relationship between general price level and AD can be sorted into one of four categories:

Changes to government fiscal policy

Business and consumer confidence

The total spending of individuals and households on goods and services in the economy.

The gross fixed capital investment spending and the value of change in stocks

The government spending on public services

The measure of exports minus imports

The gross fixed capital investment spending and the value of change in stocks

The total spending of individuals and households on goods and services in the economy.

The government spending on public services

The measure of exports minus imports

The government spending on public services

The total spending of individuals and households on goods and services in the economy.

The gross fixed capital investment spending and the value of change in stocks

The measure of exports minus imports

The total spending of individuals and households on goods and services in the economy.

The gross fixed capital investment spending and the value of change in stocks

The government spending on public services

A measure of the proportion of an increase in income that a person or household is likely to spend on consumption (goods and services) rather than save.

It is an economic measure of how savings change, given a change in income.

A measure of the proportion of an increase in income that a person or household is likely to spend on consumption (goods and services) rather than save.

Interest rates affect both the incentive to save and the cost of borrowing

A rise in wealth can increase consumer difference

When the labour market is improving, confidence and income will increase

Income adjusted for inflation and after direct taxes and benefits

The amount of money you've earned before taxes and other items are deducted.

A rise in wealth can increase consumer difference

Interest rates affect both the incentive to save and the cost of borrowing

When the labour market is improving, confidence and income will increase

Income adjusted for inflation and after direct taxes and benefits

The amount of money you've earned before taxes and other items are deducted.

When the labour market is improving, confidence and income will increase

Interest rates affect both the incentive to save and the cost of borrowing

A rise in wealth can increase consumer difference

Income adjusted for inflation and after direct taxes and benefits

The amount of money you've earned before taxes and other items are deducted.

Real Disposable Income

Income adjusted for inflation and after direct taxes and benefits

Interest rates affect both the incentive to save and the cost of borrowing

A rise in wealth can increase consumer difference

When the labour market is improving, confidence and income will increase

The amount of money you've earned before taxes and other items are deducted.

Interest rates affect both the incentive to save and the cost of borrowing

A rise in wealth can increase consumer difference

When the labour market is improving, confidence and income will increase

Income adjusted for inflation and after direct taxes and benefits

Total spending on the investment on new capital inputs

Gross investment adjusted for capital consumption

Total spending on the investment on new capital inputs

Factors affecting Investment

Accès to credit and regulation

When firms decide whether or not they are going to invest into the future, they need to make assumption about what expected demand the consumers prefer

It represents the emotions of confidence, hope, fear and permission that can affect financial decision making, which in turn can fuel or hamper economic growth

Firms can finance their investment in two ways either using retained profit or through borrowing

The key concern and idea is the availability of loans, in times of uncertainty and crises, banks may not want to lend out to business that could be deemed as risky

Some firms may find that regulation could inhibit them from accessing borrowing