Aggregate Demand and Supply Model

Factors Affecting Aggregate Demand

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Christian Bien

Learning Objectives

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What is Aggregate Demand?
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Aggregate Demand is the total demand for an economy's goods and services. Aggregate demand consists of the sum of consumption, investment, government expenditure and net exports. AD = C + I + G + (X-M) Notice how the components of aggregate demand are the injections of an economy in a circular flow (minus imports),

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What are the Factors Affecting Aggregate Demand?
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The factors affecting aggregate demand are the factors affecting the components of consumption, investment, government expenditure and net exports. These can be found in the aggregate expenditure section: - Factors Affecting Consumption - Factors Affecting Investment - Factors Affecting Government Expenditure - Factors Affecting Net Exports

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Concept of Aggregate Demand and Supply
Factors Affecting Aggregate Demand
Factors Affecting Aggregate Supply
Classical AD/AS Model
Effects of Changes in Aggregated Demand
Effects of Changes in Aggregate Supply
Aggregate Demand and Supply Model / Business Cycle
Keynesian AD/AS Model
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