Please enable JavaScript.
Coggle requires JavaScript to display documents.
Scenarios that affect the Aggregate Demand and Aggregate Supply, image,…
Scenarios that affect the Aggregate Demand
and Aggregate Supply
Unemployment rate increase
AD shift to the left from AD0 to AD1
The price level of labour decrease
Household income decrease
Living Standard drop
Consumer reduce spending
Productivity decrease
GDP decrease
Aggregate Demand Shift
Usage of Technology Increase
Aggregate Supply Shift
AS shift to the right from AS0 to AS1
Supply increase
Productivity Increase
Ways to achieve equilibrium
Demand-side
Increase aggregate demand
Expansionary fiscal policy
Increase government spending
Reduce taxes
Expansionary monetary policy
Increase growth of the money supply
Lower interest rate
Supply side
Cut unemployment benefit
Trade union reform
Reduce income tax
Promote training
Improve education
