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Aggregate Demand | Effect | Aggregate Supply | Effect |
---|---|---|---|
Income | + | Labour Cost | - |
Wealth | + | Factor Cost | - |
Population | + | Prior Investment | + |
Interest Rate | - | Productivity | + |
Bond price | + | Interest Rate | - |
Government Purchases | + | Bond Price | + |
Tax rate | - | Expected Profits | + |
Net Exports | + | Tax rate | - |
Expected Inflation | + | Expected Inflation | - |
An increase of the factor will cause the curve to shift to the left if it's (-) and will cause the curve to shift to the right if it's (+)