Answer to Question #16176 in Economics of Enterprise for a n m
If you wanted to increase aggregate demand how would you do it for:
Which one of these types of expenditure also have an effect upon the Aggregate supply side of the economy?
1. Consumption demand - to increase person's income - to increase prices of substitutions - to decrease prices of compliments etc. 2. Investment demand - to decline tax rate - to impove investment legislation - to create good invextment atmosphere 3. Net export - to increase quality of national products - to conduct stimulating export-import policy - to provide tax benefits for export-oriented companies\
All of these types can lead to AS changes but investment and consumption demand have the greatest impact.