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Start studying APMac Unit 4 Cumulative Set. Learn vocabulary, terms, and more with flashcards, games, and other study tools.

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Changes in the following non-price level factors or determinants cause changes in aggregate demand and shifts of the entire aggregate demand (AD) curve.

Autonomous consumption (autonomous consumer spending) C a, which depends upon:

consumer nominal wealth

consumer expectations and confidence concerning job security and future income

money supply

autonomous taxes Ta (e.g., sales and property taxes)

Planned investment spending I, which depends upon:

real interest rates (i.e., changes in interest rates not caused by changes in the price level)

business profit expectations or the expected rate of return

business taxes

money supply

Government spending G:

Net export spending X:

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ThinkEconomics: The Aggregate Demand and Aggregate Supply Model

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Changes in the following non-price level factors or determinants cause changes in aggregate demand and shifts of the entire aggregate demand (AD) curve.