analyze the business cycle What are the determinants of aggr
analyze the business cycle
What are the determinants of aggregate demand?
Examine changes in aggregate demand and aggregate supply, using the data from Step 1 and Step 2.
How do these changes affect the business cycle?
Solution
The 4 determinant of aggregrate demand are
1. Changes in consumption
2. Changes in investing spending
3. Changes in goverment policy
4. Changes in net exports
