IB Economics HL 3.2.2 Determinants of aggregate demand
IB Economics HL 3.2.2 Determinants of aggregate demand
Students practise explaining how shifts in consumption, investment, government spending, or net exports—driven by confidence, interest rates, or trade flows—affect AD and real GDP.
How this is tested
- explain how weak confidence or higher rates cut consumption, shifting AD left and GDP down
- explain how lower remittances or exports reduce net exports, shifting AD leftward
- explain how rising export sales increase net exports, shifting AD right and raising real GDP