Describe factors cause change in aggregate demand

Question

Assume that aggregate demand and the short run supply for a hypothetical economy are as illustrated below:

Assume that buyers wish to purchase $200 billion of extra real domestic output at each price level. Describe factors might cause this change in aggregate demand? Describe the new equilibrium price level and level of real output?

Answer 1

Rise in consumer, government, investment or net export spending might shift the AD curve rightward. New equilibrium price level is 250. New equilibrium GDP will be $400 billion.