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Flashcards for 3.7.4 Demand-Side Effects of Supply-Side Policies - IB

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3.7.4 Demand-Side Effects of Supply-Side Policies

IB Economics 3.7.4 Demand-side Effects of Supply-side Policies Flashcards

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Flashcards for 3.7.4 Demand-Side Effects of Supply-Side Policies

Flashcards for 3.7.4 Demand-Side Effects of Supply-Side Policies - IB

These interactive flashcards help IB Economics students Standard Level (SL) and Higher Level (HL) quickly review and memorize the essential definitions, formulas, and terms needed for success in IB Exams.

Each card focuses on 3.7.4 Demand-Side Effects of Supply-Side Policies and is aligned with the IB Economics syllabus, ensuring focused revision on microeconomics, macroeconomics, and international trade.

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A government increases spending on transport infrastructure. Predict the immediate short-run effect on aggregate demand ( $A D$ ) and its components.

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$A D$ increases (shifts right).
Direct increase in government spending ( $G$ ).
Indirect increase in consumption ( $C$ ) due to higher employment and disposable income.

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