The following graph shows an increase in aggregate demand (AD) in a hypothetical country. Specifically, aggregate demand

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The Following Graph Shows An Increase In Aggregate Demand Ad In A Hypothetical Country Specifically Aggregate Demand 1 (32.51 KiB) Viewed 33 times

The following graph shows an increase in aggregate demand (AD) in a hypothetical country. Specifically, aggregate demand shifts to the right from AD₁ to AD₂, causing the quantity of output demanded to rise at all price levels. For example, at a price level of 140, output is now $400 billion, where previously it was $300 billion. PRICE LEVEL 170 160 150 140 130 120 110 100 90 0 100 200 300 400 500 OUTPUT (Billions of dollars) AD 9 2 600 700 800 The following table lists several determinants of aggregate demand. Complete the table by indicating the change in each determinant necessary to increase aggregate demand. Change Needed to Increase AD Consumer expectations about future profitability Government spending Interest rates The value of the domestic currency relative to the foreign currency