Source: https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-2-3-shape-of-the-aggregate-demand-curve [Revision notes](https://senecalearning.com/en-gb/revision-notes.md) › [IB Diploma](https://senecalearning.com/en-gb/revision-notes/ib-diploma.md) › [Economics](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics.md) › [Economics: IB Diploma](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma.md) › Shape of the Aggregate Demand Curve # Shape of the Aggregate Demand Curve Economics: IB Diploma, topic 2.2.3 ## Shape of the Aggregate Demand Curve The aggregate demand (AD) curve shows the total spending on domestic goods and services at each price level. ### AD curve explained ![AD curve explained](https://image-v2.cdn.app.senecalearning.com/2020-06/c3cdc4a4-9714-4e59-ab0f-1fb19c606684/AP%20Econ%20diagrams%20(17).png) - AD slopes down, showing that, as the price level rises, the amount of total spending on domestic goods and services declines. - There are three reasons which explain the shape of the AD curve: - The real wealth effect - The interest rate effect - The exchange rate effect ### The real wealth effect ![The real wealth effect](https://image-v2.cdn.app.senecalearning.com/2018-03/3520b3e2-ae42-4fea-95d6-098fe9b42a0a/shutterstock_156197999.jpg) - The wealth effect holds that as the price level increases, the buying power of savings that people have stored up in bank accounts and other assets will diminish, eaten away to some extent by inflation. - Because a rise in the price level reduces people’s wealth, consumption spending will fall as the price level rises. ### The interest rate effect ![The interest rate effect](https://image-v2.cdn.app.senecalearning.com/2018-08/1bdae215-66a1-4ce5-9c98-d7cf02d6c5f0/collapse-bank-.jpg) - The interest rate effect is that as prices for outputs rise, the same purchases will take more money or credit to accomplish. This additional demand for money and credit will push interest rates higher. - In turn, higher interest rates will reduce borrowing by businesses for investment purposes and reduce borrowing by households for homes and cars—thus reducing consumption and investment spending. ### The exchange rate effect ![The exchange rate effect](https://image-v2.cdn.app.senecalearning.com/2018-08/ba7dd6ed-2935-465f-b4be-f1537894634d/German-Rentenmark-Coin-.jpg) - The foreign price effect points out that if prices rise in the United States while remaining fixed in other countries, then goods in the United States will be relatively more expensive compared to goods in the rest of the world. - U.S. exports will be relatively more expensive, and the quantity of exports sold will fall. U.S. imports from abroad will be relatively cheaper, so the quantity of imports will rise. Thus, a higher domestic price level, relative to price levels in other countries, will reduce net export expenditures. ## Test yourself on Shape of the Aggregate Demand Curve - Which theory does this definition describe?This theory holds that as the price level increases, the buying power of savings that people have stored up in bank accounts and other assets will diminish, eaten away to some extent by inflation. [Practise this topic for free](https://app.senecalearning.com/classroom/course/7b55fd22-05a1-435c-9704-355732f0e415/section/fdcd6576-a534-4273-9638-cfa6fe080f05/session) - Previous topic: [2.2.2 Components of Aggregate Demand](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-2-2-components-of-aggregate-demand.md) - Next topic: [2.2.4 Shifts in Aggregate Demand](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-2-4-shifts-in-aggregate-demand.md) ## Economics: IB Diploma contents ### 1 Microeconomics - 1.1 Competitive Markets: Demand & Suply - [1.1.1 Markets & Demand](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-1-1-markets-and-demand.md) - [1.1.2 Diminishing Marginal Returns](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-1-2-diminishing-marginal-returns.md) - [1.1.3 Supply](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-1-3-supply.md) - [1.1.4 Market Equilibrium](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-1-4-market-equilibrium.md) - [1.1.5 Price Mechanism](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-1-5-price-mechanism.md) - [1.1.6 Consumer & Producer Surplus](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-1-6-consumer-and-producer-surplus.md) - [1.1.7 IB Multiple Choice - Demand](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-1-7-ib-multiple-choice-demand.md) - [1.1.8 IB Multiple Choice - Supply](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-1-8-ib-multiple-choice-supply.md) - 1.2 Elasticity - [1.2.1 Elasticities of Demand](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-2-1-elasticities-of-demand.md) - [1.2.2 Factors Affecting Price Elasticity of Demand](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-2-2-factors-affecting-price-elasticity-of-demand.md) - [1.2.3 Elasticity of Supply](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-2-3-elasticity-of-supply.md) - [1.2.4 Price Elasticity of Supply](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-2-4-price-elasticity-of-supply.md) - [1.2.5 IB Multiple Choice - Price Elasticity of Demand](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-2-5-ib-multiple-choice-price-elasticity-of-demand.md) - [1.2.6 IB Multiple Choice - Price Elasticity of Supply](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-2-6-ib-multiple-choice-price-elasticity-of-supply.md) - [1.2.7 IB Multiple Choice - Other Elasticities](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-2-7-ib-multiple-choice-other-elasticities.md) - 1.3 Government Intervention - [1.3.1 Indirect Taxes & Subsidies](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-3-1-indirect-taxes-and-subsidies.md) - [1.3.2 Application Question - Taxing Prices or Quantities](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-3-2-application-question-taxing-prices-or-quantities.md) - [1.3.3 Subsidies & Price Controls](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-3-3-subsidies-and-price-controls.md) - [1.3.4 Deadweight Loss & Government Intervention](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-3-4-deadweight-loss-and-government-intervention.md) - [1.3.5 Elasticity & Tax Incidence](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-3-5-elasticity-and-tax-incidence.md) - [1.3.6 IB Multiple Choice - Government Intervention](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-3-6-ib-multiple-choice-government-intervention.md) - 1.4 Market Failure - [1.4.1 Types of Market Failure](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-4-1-types-of-market-failure.md) - [1.4.2 Introduction to Externalities](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-4-2-introduction-to-externalities.md) - [1.4.3 Negative Externalities](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-4-3-negative-externalities.md) - [1.4.4 Policy for Negative Externalities](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-4-4-policy-for-negative-externalities.md) - [1.4.5 Positive Externalities](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-4-5-positive-externalities.md) - [1.4.6 The Deadweight Welfare Loss of Externalities](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-4-6-the-deadweight-welfare-loss-of-externalities.md) - [1.4.7 Case Study - The Externalities of Education](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-4-7-case-study-the-externalities-of-education.md) - [1.4.8 Public Goods & the Free-Rider Problem](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-4-8-public-goods-and-the-free-rider-problem.md) - [1.4.9 Asymmetric Information](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-4-9-asymmetric-information.md) - [1.4.10 End of Topic Test - Market Failure](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-4-10-end-of-topic-test-market-failure.md) - [1.4.11 Application Questions - Market Failure](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-4-11-application-questions-market-failure.md) - 1.5 HL: Theory of the Firm & Market Structures - [1.5.1 Theory of the Firm & Market Structures](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/1-5-1-theory-of-the-firm-and-market-structures.md) ### 2 Macroeconomics - 2.1 The Level of Overall Economic Activity - [2.1.1 The Circular Flow of Income](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-1-1-the-circular-flow-of-income.md) - [2.1.2 Defining GDP](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-1-2-defining-gdp.md) - [2.1.3 Limitations of GDP](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-1-3-limitations-of-gdp.md) - [2.1.4 IB Multiple Choice - Economic Indicators](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-1-4-ib-multiple-choice-economic-indicators.md) - [2.1.5 Business Cycles](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-1-5-business-cycles.md) - [2.1.6 Output Gaps](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-1-6-output-gaps.md) - 2.2 Aggregate Demand & Aggregate Supply - [2.2.1 The Aggregate Demand Curve](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-2-1-the-aggregate-demand-curve.md) - [2.2.2 Components of Aggregate Demand](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-2-2-components-of-aggregate-demand.md) - [2.2.3 Shape of the Aggregate Demand Curve](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-2-3-shape-of-the-aggregate-demand-curve.md) - [2.2.4 Shifts in Aggregate Demand](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-2-4-shifts-in-aggregate-demand.md) - [2.2.5 IB Multiple Choice - Aggregate Demand](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-2-5-ib-multiple-choice-aggregate-demand.md) - [2.2.6 Short & Long-Run Aggregate Supply](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-2-6-short-and-long-run-aggregate-supply.md) - [2.2.7 Alternative Models of LRAS](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-2-7-alternative-models-of-lras.md) - [2.2.8 Equilibrium in the AD-AS Model](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-2-8-equilibrium-in-the-ad-as-model.md) - [2.2.9 Output Gaps & the AD-AS Model](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-2-9-output-gaps-and-the-ad-as-model.md) - 2.3 Macroeconomic Objectives - [2.3.1 Introduction to Unemployment](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-3-1-introduction-to-unemployment.md) - [2.3.2 Limitations of Unemployment](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-3-2-limitations-of-unemployment.md) - [2.3.3 Types of Unemployment](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-3-3-types-of-unemployment.md) - [2.3.4 Causes & Impact of Unemployment](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-3-4-causes-and-impact-of-unemployment.md) - [2.3.5 Defining Inflation](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-3-5-defining-inflation.md) - [2.3.6 Measuring Inflation](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-3-6-measuring-inflation.md) - [2.3.7 Use of Index Numbers](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-3-7-use-of-index-numbers.md) - [2.3.8 The Consumer Price Index](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-3-8-the-consumer-price-index.md) - [2.3.9 Consequences of Inflation](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-3-9-consequences-of-inflation.md) - [2.3.10 Causes of Inflation](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-3-10-causes-of-inflation.md) - [2.3.11 Inflation & Unemployment Tradeoff](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-3-11-inflation-and-unemployment-tradeoff.md) - [2.3.12 The Short-Run Phillips Curve](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-3-12-the-short-run-phillips-curve.md) - [2.3.13 The Long-Run Phillips Curve](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-3-13-the-long-run-phillips-curve.md) - 2.4 Economic Growth, Poverty & Inequality - [2.4.1 Measuring Economic Growth](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-4-1-measuring-economic-growth.md) - [2.4.2 Determinants of Productivity](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-4-2-determinants-of-productivity.md) - [2.4.3 Economic Growth & Productivity](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-4-3-economic-growth-and-productivity.md) - [2.4.4 Absolute & Relative Poverty](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-4-4-absolute-and-relative-poverty.md) - [2.4.5 Inequality](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-4-5-inequality.md) - [2.4.6 Inequality 2](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-4-6-inequality-2.md) - [2.4.7 Lorenz Curve](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-4-7-lorenz-curve.md) - [2.4.8 Government Policy on Poverty](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-4-8-government-policy-on-poverty.md) - [2.4.9 End of Topic Test - Poverty & Inequality](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-4-9-end-of-topic-test-poverty-and-inequality.md) - [2.4.10 Application - Inequality & Poverty](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-4-10-application-inequality-and-poverty.md) - 2.5 Fiscal Policy - [2.5.1 Introduction to Fiscal Policy](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-5-1-introduction-to-fiscal-policy.md) - [2.5.2 Fiscal Policy and AD-AS Model](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-5-2-fiscal-policy-and-ad-as-model.md) - [2.5.3 Fiscal Policy Lags](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-5-3-fiscal-policy-lags.md) - [2.5.4 Automatic Stabilizers](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-5-4-automatic-stabilizers.md) - [2.5.5 IB Multiple Choice - Fiscal Policy](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-5-5-ib-multiple-choice-fiscal-policy.md) - 2.6 Monetary Policy - [2.6.1 Objectives of Monetary Policy](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-6-1-objectives-of-monetary-policy.md) - [2.6.2 Monetary Policy Implementation](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-6-2-monetary-policy-implementation.md) - [2.6.3 Monetary Policy & AD-AS Model](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-6-3-monetary-policy-and-ad-as-model.md) - [2.6.4 Monetary Policy Lags & Pitfalls](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-6-4-monetary-policy-lags-and-pitfalls.md) - 2.7 Supply-Side Policies - [2.7.1 Supply-Side Policies](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-7-1-supply-side-policies.md) - [2.7.2 Supply-Side Policies 2](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/2-7-2-supply-side-policies-2.md) ### 3 The Global Economy - 3.1 International Trade - [3.1.1 Globalisation](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-1-1-globalisation.md) - [3.1.2 Globalisation for LEDCs](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-1-2-globalisation-for-ledcs.md) - [3.1.3 Globalisation for MEDCs](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-1-3-globalisation-for-medcs.md) - [3.1.4 Comparative Advantage & Trade](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-1-4-comparative-advantage-and-trade.md) - [3.1.5 Protectionism](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-1-5-protectionism.md) - [3.1.6 Arguments for Protectionism](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-1-6-arguments-for-protectionism.md) - [3.1.7 Arguments Against Protectionism](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-1-7-arguments-against-protectionism.md) - [3.1.8 End of Topic Test - Globalisation & Trade](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-1-8-end-of-topic-test-globalisation-and-trade.md) - [3.1.9 Case Study - Globalisation & Trade](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-1-9-case-study-globalisation-and-trade.md) - 3.2 Exchange Rates - [3.2.1 Floating Exchange Rates](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-2-1-floating-exchange-rates.md) - [3.2.2 Fixed Exchange Rate](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-2-2-fixed-exchange-rate.md) - [3.2.3 Effect of a Stronger & Weaker Dollar](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-2-3-effect-of-a-stronger-and-weaker-dollar.md) - 3.3 The Balance of Payments - [3.3.1 Balance of Payments](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-3-1-balance-of-payments.md) - [3.3.2 Balance of Payments 2](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-3-2-balance-of-payments-2.md) - [3.3.3 FDI & Reducing a BoP Deficit](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-3-3-fdi-and-reducing-a-bop-deficit.md) - 3.4 Economic Integration - [3.4.1 Customs Unions & WTO](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-4-1-customs-unions-and-wto.md) - [3.4.2 Merged Currency](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-4-2-merged-currency.md) - 3.5 Terms of Trade - [3.5.1 Absolute & Comparative Advantage](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-5-1-absolute-and-comparative-advantage.md) - [3.5.2 Gains from Trade](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-5-2-gains-from-trade.md) - [3.5.3 Terms of Trade](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-5-3-terms-of-trade.md) - [3.5.4 IB Multiple Choice - Comparative Advantage & Trade](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-5-4-ib-multiple-choice-comparative-advantage-and-trade.md) - 3.6 Economic Development - [3.6.1 Factors Influencing Growth & Development](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-6-1-factors-influencing-growth-and-development.md) - [3.6.2 International Institutions](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-6-2-international-institutions.md) - [3.6.3 Measures of Development](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-6-3-measures-of-development.md) - [3.6.4 Barriers to Development](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-6-4-barriers-to-development.md) - [3.6.5 Case Study - The Bottom Billion](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-6-5-case-study-the-bottom-billion.md) - [3.6.6 End of Topic Test - Emerging & Developing](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-6-6-end-of-topic-test-emerging-and-developing.md) - 3.7 The Role of Domestic & International Factors - [3.7.1 Interventionist Strategies](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-7-1-interventionist-strategies.md) - [3.7.2 Development Strategies](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-7-2-development-strategies.md) - [3.7.3 Development Promotion Policies](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-7-3-development-promotion-policies.md) - [3.7.4 End of Topic Test - Growth & Global Development](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-7-4-end-of-topic-test-growth-and-global-development.md) - [3.7.5 Application Questions -Growth & Global Development](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-7-5-application-questions-growth-and-global-development.md) - 3.8 The Role of International Trade - [3.8.1 International Institutions](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-8-1-international-institutions.md) - [3.8.2 End of Topic Test - Globalisation & Trade](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-8-2-end-of-topic-test-globalisation-and-trade.md) - 3.9 The Role of Foreign Aid - [3.9.1 Aid](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-9-1-aid.md) - [3.9.2 Limitations of Aid](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-9-2-limitations-of-aid.md) - [3.9.3 Support for Aid](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-9-3-support-for-aid.md) - [3.9.4 Application Questions - Developing Countries](https://senecalearning.com/en-gb/revision-notes/ib-diploma/economics/economics-ib-diploma/3-9-4-application-questions-developing-countries.md)