GIGAMIND

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115 CFA
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115.030.30.05 Economics - Reading 14 - 5. Shifts in Aggregate Demand and Supply

5. Shifts in Aggregate Demand and Supply

h. explain causes of movements along and shifts in aggregate demand and supply curves;

What are some of the common factors that can shift the Aggregate Demand curve?
- Increasing wealth causes increased consumption
- Increased optimism about the future
- High capacity utilization (companies increase spending to increase production)
- Expanding fiscal policy - higher government spending and lower taxes
- Growth in global economy


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