Aggregate Demand and Aggregate Supply

Question 1

Factors Influencing Aggregate Demand

Answer 1

Consumption - Confidence, Interest Rates, Expectations
Investment - Business Confidence, Interest Rates, Expectations
Government Spending - Levels of spending and taxation
Net Exports - Exchange Rates, Trade Policies

Question 2

Factors influencing SR Aggregate Supply

Answer 2

Costs Of Raw Materials
Exchange Rates
Tax Rates
Wage Rates

Question 3

Factors influencing LR Aggregate Supply

Answer 3

Technological Advancements
Labour Productivity
Changes in Capital
Government Regulations