Determinants of Aggregate Demand

Changes in Consumption Spending:
-Change in wealth
-Change in age of consumer durable goods
-Consumer expectations

Changes in Investment Spending:
-Change in interest rates (i)
-Change in age of capital goods
-Change in amount of spare capacity
-Business expectations
-Government regulations

Changes in Net Exports:
-Change in exchange rate
-Change in income levels abroad
-Price of foreign goods
-Tastes of foreigners

Changes in Government Spending:

Changes in Money Supply:




Stephanie Powers, "AD and AS" Red Deer College, accessed April 14th, 2012.