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Aggregate demand shifters
Consumption + investment + gov spending + net exports
Aggregate supply shifters
Wages, productivity, business taxes, business regulations, inflation expectations
(All cause leftward shifts if inc)
Demand shifters
Preferences, price of related goods (substitutes and complements), market size, income (normal goods vs inferior), expectations for future
Supply shifters
Input prices, gov tools (taxes, subsidies(inc supply), regulations (Dec supply)), competition, technology, prices of other goods, consumer expectations
Business trough
Expansion, contraction, peaks, troughs
Long run aggregate supply shifters
Wages flexible and adjust to new price levels
Shifters
quantity of resources
Quality of resources
Productivity
Technology
Anything that shifts PPC shifts LRAS
PPC shifters
Changes in availability of resources, number of resources, tech, labor
Shifters of SRPC
Changes to aggregate supply
Shifters of LRPC
Changes to natural rate of unemployment
Movement along SRPC
Changes in aggregate demand
money market demand shifters
Ag price level, real GDP, tech, basically changes in AD
Money market supply shifters
Monetary policy conducted by central banks
Loanable funds market demand shifters
Changes in perceived business opportunities, changes in gov borrowing
Loanable funds market supply shifters
Changes in saving behavior, changes in foreign investment
