Aggregate Demand

Consumer confidence improves as consumers become optimistic about future economic conditions

• consumption

• investment

• government spending

• net exports

Consumer confidence improves as consumers become optimistic about future economic conditions

• AD1

• AD2

• AD3

The government decides to increase taxes on firms' profits.

• consumption

• investment

• government spending

• net exports

The government decides to increase taxes on firms' profits.

• AD1

• AD2

• AD3

Firms become fearful that a recession is about to begin.

• consumption

• investment

• government spending

• net exports

Firms become fearful that a recession is about to begin.

• AD1

• AD2

• AD3

The government decides to increase its spending on health care services.

• consumption

• investment

• government spending

• net exports

The government decides to increase its spending on health care services.

• AD1

• AD2

• AD3

There is a decline in the real estate market (average house prices fall).

• consumption

• investment

• government spending

• net exports

There is a decline in the real estate market (average house prices fall).

• AD1

• AD2

• AD3