Aggregate Demand
for certain goods and services raises due to following
factors:-
- Rise in the income levels of the people due to higher salaries,
wages etc.
- Rise in the minimum wages by the government.
- Subsidies by the government on certain goods and services.
- Increased government expenditure, leading to higher flow of
money in the market.
- Decrease in the direct tax.
- Increased personal disposable income.
- Black money / corruption.
- Tax Evasion
Aggregate Supply
for certain goods and services raises due to following
factors:-
- Decrease in the input prices of the raw materials at the
production level.
- Introduction of new technology.
- Increase in labour force/ workers.
- Efficient Supply chain. etc