Shifting the Aggregate Demand & Aggregate Supply Curve
Businesses Owners are less optimistic about the health of the economy.
Left (-) Shift in AD
Decrease in Assets (Wealth)
Left (-) Shift in AD
Decrease in Government Spending
Left (-) Shift in AD
Increase in Taxes
Left (-) Shift in AD
Monetary Policy (Decrease in Quantity of Money)
Left (-) Shift in AD
Pessimistic Expectations
Left (-) Shift in AD
Stock of Capital is Large
Left (-) Shift in AD
The Federal Reserve increases interest rates.
Left (-) Shift in AD
The Government decreases welfare and veterans benefits.
Left (-) Shift in AD
Cost-Push Inflation
Left (-) Shift in AS
Expectation of Higher Inflation
Left (-) Shift in AS
Increase in Commodity Prices
Left (-) Shift in AS
Increase in Nominal Wages
Left (-) Shift in AS
Workers Decrease in Productivity
Left (-) Shift in AS
A rising price level decreases the value of money help for purchases.
Movement Right (+) along the AD curve
A new president makes consumers and businesses more confident about the economy.
Right (+) Shift in AD
Congress passes a tax cut for the middle class, and the President signs it.
Right (+) Shift in AD
Consumers expect the job market to be much stronger in the next few months.
Right (+) Shift in AD
Decrease in Taxes
Right (+) Shift in AD
Demand-Pull Inflation
Right (+) Shift in AD
During a recession, the government increases spending on schools, highways, and other public works.
Right (+) Shift in AD
Increase in Assets (Wealth)
Right (+) Shift in AD
Increase in Government Spending
Right (+) Shift in AD
Monetary Policy (Increase in Quantity of Money)
Right (+) Shift in AD
Optimistic Expectations
Right (+) Shift in AD
Stock of Capital is Small
Right (+) Shift in AD
The Government lowers personal income taxes.
Right (+) Shift in AD
The stock market has reached new records high levels of value.
Right (+) Shift in AD
The stock of physical capital has been falling for nearly a year.
Right (+) Shift in AD
When the unemployment rate at 5 percent, the federal government reduces personal taxes and increases government spending.
Right (+) Shift in AD
Decrease in Commodity Prices
Right (+) Shift in AS
Decrease in Nominal Wages
Right (+) Shift in AS
Expectation of Lower Inflation
Right (+) Shift in AS
New oil discoveries cause large decreases in energy prices
Right (+) Shift in AS
New technology and better education increase productivity.
Right (+) Shift in AS
Workers Increase in Productivity
Right (+) Shift in AS
