Social Sciences and History / Unit 15 SSH 1414 short lesson, about 20 seconds
The Four Components and Their Movers
Captions available
The idea
Aggregate demand sums consumption, investment, government spending and net exports. Consumption moves with income, taxes, expectations and wealth. Investment moves with expected profitability: expected growth, technology, input prices, tax incentives and interest rates. Politics sets G; net exports follow relative growth and prices.
In practice
Disposable income: after taxes.
Where people slip
This glossary's real GDP, actually sold, yields to unit 14's.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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