1. The three reasons for the downward slope of the aggregated demand curve are measured in effect. They are: Real Balances-this is caused by a change in the price levels. Next are Interest Rates-here high price levels increases the demand for money. When the supply is fixed the demand drives up the price. This price is the interest rate. Foreign Purchases-occur when the United States price levels increase relative to those overseas (and the exchange doesn't respond fast enough or completely), then the foreign markets buy more foreign goods. This reduces the number of US goods and creates a rise in exports.
2. The three major factors that can cause a shift in the aggregated supply curve are: Changes in Consumer Spending, which deals with price changes. Investment Spending is the plying of capital goods. Government Spending is the increase in it's purchases, a shift in the curve, as long as taxes and interest rates don't change as a result.
Hummmmmmm. What, exactly are the questions you are trying to answer.
In 1) I sense you are confused between aggregate demand for goods and services and aggregate demand for money. Demand curves are simply relationships between price and quantity. (The price of holding money is the interest rate). Demand curves are downward sloping because at higher prices, people want to hold/consume less.
In 2) changes in consumer spending changes the aggregate demand curve, not supply. Changes in investment spending, in the short run, are also changes to aggregate demand. Government spending is also a component of aggregate demand.
Factors that affect supply are levels of technology, levels of factors of production (labor, capital, natural resources), etc.
I apologize for any confusion caused. Let me clarify the questions you mentioned.
1) The three reasons for the downward slope of the aggregate demand curve refer to factors that affect the quantity demanded of goods and services in the economy, not the demand for money. These factors are:
a) Real Balances: A decrease in the price level (inflation) increases the purchasing power of money. As a result, individuals and businesses will need less money to buy the same quantity of goods and services, leading to an increase in the quantity demanded.
b) Interest Rates: High price levels increase the demand for money. When the money supply is fixed, the increased demand drives up the price of money, which is the interest rate. Higher interest rates discourage borrowing and investment, reducing the quantity demanded of goods and services.
c) Foreign Purchases: If the price levels in the United States increase relative to those overseas, foreign markets may buy more foreign goods and reduce the number of US goods. This leads to a decrease in exports, affecting the quantity demanded of goods and services domestically.
2) The factors you mentioned (changes in consumer spending, investment spending, and government spending) are indeed factors that can affect aggregate demand, but they do not cause a shift in the aggregate supply curve. Factors that affect aggregate supply include changes in technology, levels of factors of production (such as labor, capital, and natural resources), and government regulations.
In summary, it's important to differentiate between aggregate demand and aggregate supply. Aggregate demand refers to the total quantity of goods and services demanded in the economy, affected by factors such as price levels, interest rates, and foreign purchases. On the other hand, aggregate supply refers to the total quantity of goods and services supplied in the economy, influenced by factors like technology, production factors, and government policies.