Aggregate demand curve

Consumption

Increases when

The rise in consumer's confidence

Decreases when

There is a cut in income tax

An increase in wealth

RIse in the money supply

Increase in population

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

Decreases when

Governemnt wants to stimulate economic activity

Government want to win political support

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

Decreases when

RIse in the quality of domestic products

Increase in income abroad

Exogenous increase in demand of domestic products/

Decrease in demand of foreign products

Increase in exchange rate

Decrease in income abroad

Exogenous decrease in demand of domestic products

increase in demand of foreign products