Understanding Factors Shifting Aggregate Demand & Supply

This video covers the following learning objectives:

✅ Define Aggregate Demand (AD) as total spending, and Aggregate Supply (AS) as total production capacity.
✅ Identify key factors shifting AD, including:

• Consumer spending

• Investment levels

• Government fiscal policies

• Net export changes

✅ Identify key factors shifting AS, including:

• Input costs (e.g., energy prices)

• Productivity improvements (e.g., technology)

• Resource availability

• Government regulations

✅ Use Excel to model AD and AS curves, showing equilibrium and shifts visually.
✅ Understand how shifts in AD and AS affect:

• Economic growth (Real GDP)

• Inflation rates (Price levels)

• Employment and unemployment

✅ Apply these concepts to practical economic scenarios, with examples relevant to financial services exams and real-world financial decision-making.