AGGREGATE DEMAND
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7 Terms
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Y axis
Price level
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X axis
Real GDP
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3 theory on why you might have a downward sloping AD/move along AD
Wealth effect
Savings, Interest rate effect
Foreign Rate exchange
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Explain the savings, interest rate effect
PL Down, Saving Up, Supply of Money Up, Interest rate down, Investment Up
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Explain the foreign exchange effect
PL down, Interest rate down, Convert out of the currency to the currency which has higher interest rate, Original currency weakens, NX increases. a
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Components that shift the AD
Components of GDP
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Explain the wealth effect
PL down, Real Wealth Up, Consumption Increase, move right along AD curve.
Note 
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