Table : TABLE 1 THE DETERMINANTS OF AGGREGATE DEMAND (THE AGGREGATE DEMAND CURVE SHIFTS WHEN THESE CHANGE)
TABLE 1 THE DETERMINANTS OF AGGREGATE DEMAND (THE AGGREGATE DEMAND CURVE SHIFTS WHEN THESE CHANGE)
DeterminantAD IncreasesAD Decreases
Consumer Spending

  • Wealth

    		• Wealth increasesWealth decreases

  • Consumer expectations

    		• Expectations improveExpectations worsen

  • Household debt

    		• Debt fallsDebt rises

  • Interest rates

    		• LowerHigher

  • Taxes

    		• Taxes are cutTaxes increase
    Investment

  • Interest rates

    		• LowerHigher

  • Expected rate of return on investment

    		• HigherLower

  • Business expectations

    		• More positiveMore negative

  • Taxes

    		• Taxes are cutTaxes increase
    Government SpendingIncreaseDecrease
    Net Exports

  • Income in other countries

    		• RisingFalling

  • Exchange rate changes

    		• Depreciating dollarAppreciating dollar