b) The AD curve

c) the AD curve

d) the distinction between a movement along, and a shift of, the AD curve

aggregate demand (AD) curve

• y-axis = average price level (PL)

• x-axis = real gross domestic product (RGDP)

• gradient = aggregate demand (AD), constant and negative

a change in AP causes

• a change in RGDP

• a movement along the AD curve

a decrease causes

• an increase in RGDP

• an extension in RGDP

an increase causes

• a decrease in RGDP

• a contraction in RGDP

determinants of AD = the factors other than AP that cause a change in AD

• consumption

• investment

• government expenditure

• net exports

a change in the determinants of aggregate demand causes

• a change in AD

• a shift of the AD curve

a decrease in value causes

• AD decreases

• AD curve shifts left

an increase in value causes

• AD increases

• AD curve shifts right