AD
AD is made up of: C+I+G+NX (In the space below create your own notes for each from workbook)
C is Consumption: __________________________________________________________________
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I is Investment: _____________________________________________________________________
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G is Government spending: ___________________________________________________________
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NX is Net eXports: __________________________________________________________________
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When there an increase in a component of the AD curve, the AD curve shifts to the ____________.

AS
AS is made up of the costs of production such as: wages, raw materials, and imported components used in production. (Basically, all other things that aren’t included in the AD curve).
As costs of production decrease _______________________________________________________
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As the NZD appreciates (gets stronger) _________________________________________________
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As more people come to NZ __________________________________________________________
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An indirect tax affects the AS curve because _____________________________________________
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Productivity is an important influence on the AS curve because _____________________________
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Technological advancements due to research and development lead to _______________________
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When answering a question regarding the move of an AD/AS curve, the three things to talk about in your answer are: effect on economic growth (the real GDP), change of price level, and change in unemployment.