Shifts in Aggregate Demand: Google Classroom Key Points

The aggregate demand curve shifts to the right.

The equilibrium quantity of output and the price level will fall.

The point of intersection between the aggregate demand curve and the aggregate supply curve.

<p>Consumption spending, investment spending, government spending, and spending on exports minus imports.</p> Signup and view all the answers

<p>Due to changes in personal choices, such as consumer or business confidence, or policy choices, such as changes in government spending and taxes.</p> Signup and view all the answers

<p>To show what determines total supply or total demand for the economy and how total demand and total supply interact at the macroeconomic level.</p> Signup and view all the answers

<p>The AD curve shifts to the right, leading to a greater real GDP and upward pressure on the price level.</p> Signup and view all the answers

<p>The AD curve shifts to the left, leading to a lower real GDP and a lower price level.</p> Signup and view all the answers

<p>The equilibrium moves to a higher quantity of output and a higher price level.</p> Signup and view all the answers

<p>Changes in the behavior of consumers or firms and changes in government tax or spending policy.</p> Signup and view all the answers

<p>It leads to an increase in consumption and investment demand, resulting in a rightward shift in the AD curve.</p> Signup and view all the answers

<p>Factors such as a risk of war, election results, foreign policy events, or a pessimistic prediction about the future by a prominent public figure.</p> Signup and view all the answers