What factors shift the aggregate demand curve to right, Microeconomics

What factors shift the Aggregate demand curve to right and what factors shift the AD curve to left? 

AD shifts to the right when any component of AD enhances autonomously; e.g., if

a) Consumers become more willing to spend at each price level;  

b) There are autonomous enhances in investment due to better business prospects;

c) The government spends more, or decreases taxes; net exports rise at all prices (due to say an increase in the quality of domestic goods relative to foreign goods). If above mentioned facts are reversed, AD will shift to the left.

 

Posted Date: 8/1/2013 6:22:56 AM | Location : United States







Related Discussions:- What factors shift the aggregate demand curve to right, Assignment Help, Ask Question on What factors shift the aggregate demand curve to right, Get Answer, Expert's Help, What factors shift the aggregate demand curve to right Discussions

Write discussion on What factors shift the aggregate demand curve to right
Your posts are moderated
Related Questions
unique products in monopoly

The End of the Productivity Slowdown As computers improved and spread throughout the U.S. economy in 1970's and 1980's economists kept waiting to see the wonders of computing

Homework 4 Q1. Suppose a consumer has utility function (u) = xy where x and y are amounts of two commodities that this consumer consume. Suppose this consumer’s income is $120, pri

Problem 1: a. Briefly explain and distinguish between a centrally planned, laissez-faire and mixed economy. b. According to you, which type of economic system is most desira

how advertisement affects the sales revenue of a form

demand: Qd=100=Px supply: MC=10+1/2Qs assume first that this firm operates in a perfectly competitive market. find the price and quanity in this market.

cartels model of collusive oligopoly

Capital Account: The capital account deals with long and short-term capital movement.These capital movements are referred to as autonomous because they take place for business o

What is Modern Economics? Modern Economics: Modern economics mostly developed within last sixty years, methodically studies individuals’ economic behavior as well as econo

DIMENSIONS OF UNEMPLOYMENT: What is the level of unemployment in the country? According to the 1999-2000 Survey of NSSO, the number of unemployed has increased from 20.13 mill