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Aggregate demand curve - Coggle Diagram
Aggregate demand curve
Consumption
Increases when
The rise in consumer's confidence
There is a cut in income tax
An increase in wealth
RIse in the money supply
Increase in population
Decreases when
Decrease in population
Increase in income tax
Decrease in MPC
Decrease in consumer's confidence
An increase in interest rate
Investment
Increases when
Cut in corporate tax
Technology is advanced
Rise in businesses' confidence
Decreases when
There is an increase in interest rate
An increase in corporate tax
Government spending
Increases when
Governemnt wants to stimulate economic activity
Government want to win political support
Decreases when
Government wants to reduce national debt
Income or corporate tax rates are reduced
Net exports
Increases when
Depreciation or devaluation of a country's currency
RIse in the quality of domestic products
Increase in income abroad
Exogenous increase in demand of domestic products/
Decrease in demand of foreign products
Decreases when
Increase in exchange rate
Decrease in income abroad
Exogenous decrease in demand of domestic products
increase in demand of foreign products