Changes in the variables that effect supply and demand:
Aggregate Demand: Income, wealth, population, interest rates, credit availability, government demands, taxation, foreign demand, investments, expectations that are based on inflationary, income, wealth and interest rate.
Aggregate Supply: Cost of labor (wages) and resources, Investment, productivity, interest rates, credit availability, foreign supply, expectations for profits, inflationary and interest rates, and taxation.
An example, the impact of demands for higher wages in an economy that is not experiencing productivity gains compared to one that is. All workers have the right to expect an increase in their standards or living over time, and they will try to raise their incomes through wage increases...
Changes in the variables that effect supply and dema