Classify each factor according to whether it is associated with a movement along the aggregate demand curve or a shift of the aggregate demand curve.

Classify each factor according to whether it is associated with a movement along the aggregate demand curve or a shift of the aggregate demand curve. Movement along the aggregate demand curve Shift of the aggregate demand curve Answer Bank a rise in the growth rate of domestic GDP relative to foreign GDP deflation a rise in government purchases a fall in taxes a fall in business expectations the wealth effect the interest rate effect the international trade effect a fall in the value of the domestic currency relative to foreign currencies inflation a rise in household expectations