Working with the Aggregate Supply and Aggregate Demand Model During these two weeks you are working on Chapter 8 Aggregate Demand and Aggregate Supply and Chapter 7 Keynesian Perspective. John Maynard Keynes believed there were times when the government had to intervene in the economy to shift the AD curve either to the right or to the left depending upon the macroeconomic problem the nation was facing. The problems that could be creating demand or supply shocks to the economy result in excessive unemployment, too much inflation, a recession or rapid expansion. The cause could be a pandemic, a world war, a terrorist attack, a stock market crash, a real estate boom, problems with major suppliers of inputs to production, etc. There are a number of good videos on Youtube explaining the ADAS model. I really like Mr. Clifford. He has some good interactive videos helping you identify what causes each curve to shift, what direction it shifts and how it affects the Macro-economy. A good reference from your textbook is Table 7.4, it categorizes things that could shift the AD curve to the left or to the right. You may want to print that table out and use it