Aggregate Supply/Demand and Phillips Curve

aggregate demand =

sum of all spending in the economy

sum of supply of all goods and services in the final market

change in factors of production cost will cause a shift in

change in government taxes on intermediate goods will cause a shift in

dramatic national events such as natural disasters will cause a shift in

change in wages will cause a shift in

when the price level goes up, people save more and rGDP decreases

when prices increase, interest rates do as well, leading to less investment, and, therefore, decreased rGDP

when price level goes up, imports go up and exports go down, and, therefore, there is a decrease in rGDP