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The AD-AS (Aggregate Demand/Aggregate Supply) model of GDP (Gross Domestic Product) can help us understand business cycles or fluctuations in economic activity. By aggregate we are looking at ALL (SUM TOTAL) of Demand or Sum Total of Supply in the Economy. GDP is the Gross Domestic Product = C+I+G+Xn or GDP = Consumption +Investments + Government Spending + Net Xports. Given Aggregate Demand and Aggregate Supply, please explain what factors would shift the Aggregate Demand Curve? Which factors would shift the Aggregate Supply Curve? (See www.bea.gov ) Bureau of Economic Analysis
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