Norway Aggregate Demand
Consumer Spending Business Confidence Government Spending Balance of Trade (NOK Million) Looking at aggregate demand (AD) as a curve with real GDP as the x-axis and price level as the y-axis, from the years 2010 to 2014, the AD curve would've most likely shifted to the right because levels of consumer and government spending, as well as balance of trade were rising. From 2015 to 2018 the AD curve would've most likely kept shifting to the right because of the rising levels of consumer and government spending, however the balance of trade chart indicates that Norway experienced trade deficits which would slow the rate at which the AD curve shifts to the right. From 2018 to 2020, the AD curve most likely continued shifting to the right since consumer and government spending were rising, however once again, Norway experienced a decrease in balance of trade levels, but it started rising again by 2020. Based on the last blog, Norway's real GDP h...