Aggregate Demand Worksheet What Shifts the Aggregate Demand Curve? Aggregate demand (AD) is made up of spending by households, businesses, the government, and other countries. The AD curve will shift if there is a change in any of its components: consumption (C), investment (1), government spending (G), or net exports (Xn). As shown in graph below, an increase in AD is shown by a rightward shift of the AD curve (from AD to ADI). A decrease in AD is shown by a leftward shift of the AD curve (AD to AD2) Shifts in Aggregate Demand AD2 AD AD, PRICE LEVEL REAL GDP Determine whether each change listed in the table below will cause an increase, decrease, or no change in AD. . In the Ist column, list which component of AD is affected: C, I, G, or Xn. . In the 2nd column, draw an up arrow if the change will cause an increase in AD, a down arrow if it will cause a decrease in AD, and write NC if it will not change AD. In the 3rd column, write the number of the AD curve after the change (use the graph and curves from above and always start with AD)