Unit 3.2 · Variations in Economic Activity: Aggregate Demand and Aggregate Supply
Shifts of the AD Curve
AO2AO4Diagram required
Syllabus Requirement
A change in any of the AD determinants will cause the AD curve to shift rightward or leftward.
Assessment Objectives
AO2Application and Analysis
AO4Use of Appropriate Skills
Summary
This topic discusses how shifts in the aggregate demand (AD) curve occur due to changes in its components, which include consumption, investment, government spending, and net exports. Understanding these shifts is important for analyzing economic fluctuations and their impact on national output and price levels.