AGGREGATE DEMAND WITH AD, WE ARE TALKING ABOUT THE AGGREGATE DEMAND PL RISING FOR ALL GOODS AND SERVICES IN THE ECONOMY WEALTH EFFECT INTREST RATE EFFECT Decline in price level means lower intrest rates WHY IS AG DOWNSLOPING? Changes in Expectations Changes in Weath Size of existing stock of physical capital Shifts of the AD curve Fiscal Policy Monetary Policy AD= C+I+G+ (x-m) Government Policies and AD
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