Shifters In AD

2 thing that can cause AD to shift:
 - A change in C, Ig, G, or Xn
 - A multiplier effect that produces a greater change than the original change in the 4 components.

1. Consumption
Household spending is affected by
- Consumer Wealth
- Consumer Expenditur
- Household Indepth
- Taxes

2. The Real GDP rate
Expected returns are influenced by:
- Expectation of future profitability
- Technology
- Degree of access capacity ( existing stock capital)
- Business Taxes

3. Government Spending
- More government spending = Increase in AD
- Less government spending = Decrease in AD

4. Net Export
Net exports are sensitive to:
- Exchange Rates (International Value of $)
- Relative Income