Chapter 8: Measures of Economic Activity

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Aggregate Demand • consists <strong>of</strong> consumption (C), investment spending (I), government spending (G) and net exports (X – M). • AD = C + I + G + ( X – M ) • C = Consumption • I= Investment • G=Government Spending • Net Exports = exports (X) minus imports (M)
A: What Determines Consumption (C)? 1. Personal Disposable Income 2. Consumer Confidence 3. Interest Rates 4. Consumer Indebtedness 5. Personal Savings
Page 1 and 2: An Introduction to Macroeconomics D
Page 3 and 4: Recovery The Business Cycle The Bus
Page 5: Economic Prosperity: The Demand Sid
Page 9 and 10: Consumer Confidence • The degree
Page 11 and 12: Consumer Indebtness • A strong fa
Page 13 and 14: How much do Canadians save? • Per
Page 15 and 16: Investment Spending By Businesses (
Page 17 and 18: What Determines the Level of Busine
Page 19 and 20: Interest Rates • When interest ra
Page 21 and 22: GOVERNMENT SPENDING ON GOODS & SERV
Page 23: Questions & Homework

Chapter 8: Measures of Economic Activity

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