FIGURE 2 SHIFTS IN THE AGGREGATE DEMAND CURVE
The determinants of aggregate demand include the components of GDP and aggregate spending: consumption, investment, government spending, and net exports. A change in one will shift the aggregate demand curve, as shown here. At first, aggregate demand is AD0; therefore, a shift to AD1 represents an increase in aggregate demand; more real output is demanded at all price levels. A decline in aggregate demand to AD2 means that less real output is being demanded at all price levels.