Aggregate Demand And Supply Curve

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Shifts in aggregate demand

The aggregate demand curve, or AD curve, shifts to the right as the components of aggregate demand—consumption spending, investment spending, government spending, and spending on exports minus imports—rise. The AD curve will shift back to the left as these components fall.

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National income and price determination

How does the aggregate supply and aggregate demand model explain equilibrium of national output and the general price level? How do economic fluctuations affect the economy's output and price level? Fiscal policy holds some of the keys.

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Lesson summary: aggregate demand

The aggregate demand curve. The aggregate demand curve shows the inverse relationship between the price level spending on real GDP. Figure 1 shows an economy that responds to a decrease in the price level by increasing the amount of aggregate demand.

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Shifts in aggregate demand (video)

If a factor of aggregate demand changes in response to anything other than a change in the price level shifts aggregate demand. In this video, we explore the shifters of AD and factors that might shift aggregate demand to the left (a decrease in AD) or to the right (an increase in AD).