Positive Shocks (Increase AD) (= Higher Growth Rate of Spending) | Negative Shocks (Decrease AD) (= Lower Growth Rate of Spending) |
---|---|
A faster money growth rate | A slower money growth rate |
Confidence | Fear |
Increased wealth | Reduced wealth |
Lower taxes | Higher taxes |
Greater growth of government spending | Lower growth of government spending |
Increased export growth | Decreased export growth |
Decreased import growth | Increased import growth |