Introduction to Shifts in Aggregate Supply and Demand

What you’ll learn to do: examine factors that shift aggregate supply and aggregate demand

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In this section, you’ll learn about the macroeconomic factors that cause shifts in the aggregate supply and aggregate demand model. The readings introduce what causes shifts in the AD curve, particularly changes in the behavior of consumers or firms and changes in government tax or spending policy. We’ll also discuss two of the most important factors that can lead to shifts in the AS curve: productivity growth and changes in input prices.