Please enable JavaScript.
Coggle requires JavaScript to display documents.
Aggregate Demand - Coggle Diagram
Aggregate Demand
-
-
Changes in consumption
When consumers spend more at a given price level ( a tax cut, a stock market boom)
AD curve will shift to the right
When consumers spend less at a given price level ( a tax hike, a stock-market decline)
AD curve will shift to the left
Changes in Government
A decrease in government purchases on goods and services (a cutback in defense or high-way spending)
AD curve will shift to the left
An increase in government purchases of goods and services ( greater spending on defense or highway construction)
AD curve will shift to the right
-
When government spending on public goods and services like roads, bus, schools
-
-
Changes in investment
When firms invest more at a given price level (optimism about the future, a fall in interest rates due to increase in the money supply)
AD curve will shift to the right
When firms invest less at a given price level (pessimism about the future, a rise in interest rates due to a decrease in the money supply)
AD curve will shift to the left
