The IS curve shifts when external factors influence aggregate demand. An increase in government spending or consumer ...

The aggregate demand curve is a downward sloping curve, indicating that when the price level increases, the total spending of an economy decreases. Consumption levels fall because people spend ...

The aggregate demand curve is a downward sloping curve, indicating that when the price level increases, the total spending of an economy decreases. Consumption levels fall because people spend ...

Suppose that there is an increase in the demand for gold, perhaps due to a flight to quality or a hedge against inflation. The market price for gold will rise as the demand curve shifts outward.