Question

Aggregate demand and aggregate supply.  Aggregate demand and aggregate supply can be influenced by several groups of...

Aggregate demand and aggregate supply.  Aggregate demand and aggregate supply can be influenced by several groups of economic actors. Who are these actors and how do they influence AD and AS? Be specific. Now look at the real world and find statistics on recent (like last 10 years) history to tell us what each group has been doing and how expectations play into the whole model. Again be specific. We should be going from theory to real world and back in this discussion.?

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Answer #1

Aggregate demand is influenced by the consumption, investment and net exports. A real world example of aggregate demand is zambia who is lowering its intrest rates for the increase in thw consumption expenditure of the people witg which the aggregate demand of the whole country zambia will be influenced.

Aggregate supply is affected mainly by production cost and prices of raw material, labour etc.The manufacturing production in zambia from 2002 to 2017 changed from 0.4 to 2.9 percent which shows the increase and influence in aggregaate supply due to chane in production cost as well.

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