The 4 determinates of aggregate demand
1.Changes in consumption
2. Changes in Investment Spending
3.Changes in Government Policy
4. Changes in Net Exports
The 3 determinants of aggregate supply
1. Changes in Resource Prices
2. Changes in Productivity
3. Changes in Business Taxes and Regulations
Changes in consumption
b. Consumer expectations
c. Household Borrowing
d. Household Taxes
Changes in Investment spending
a. Interest rates
b. Expected Returns
2. technological change
4. Business costs
Changes in Gov't policy
a. Fiscal policy(Gov't spending and taxation)
b. monetary policy(money supply and interest rates)
Changes in Net exports
a. exchange rates
b. Gov't trade policies
Changes in resource prices
b. Commodity prices
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