Economics A-Level
Aggregate demand and supply
What Aggregate demand and supply means in Economics A-Level, as defined for AQA.
Definition of Aggregate demand and supply
Check what you remember
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Reference: AQA
Higher taxes reduce disposable income and consumption, while austerity during a recession can severely depress demand; higher tax rates may disincentivise work, reducing supply.
Topics that use Aggregate demand and supply
- Fiscal policy (AQA A-Level)
Related terms
- Aggregate supply
- Automatic stabilisers
- Budget balance
- Budget deficit
- Budget surplus
- Crowding out
- Direct taxes
- Economic capacity
Using Aggregate demand and supply in the exam
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