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Name some economic events not related to government policy that could cause aggregate demand to shift.

Short Answer

Expert verified

The financial occasions not connected with government strategy that could make aggregate demand shift are imports and products, utilization and ventures.

Step by step solution

01

Concept Introduction

The Keynesian perspective is worried about aggregate demand. The basic premise is that firms will only generate product if they plan to sell it.

02

Economic Events

Some of the economic events not related to government policy which could cause aggregate demand to shift are:

Import and Export: There will be more imports if the income is more and exports are based on the situation of the other countries.

Consumption: It can shift due to a variety of factors, including changes in income, taxes, future income projections, and asset levels.

Investments: these are based on the future economical projections of the respective country.

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