Please answer the questions in a Word document, maximum 2 pages (include answer only). APA style is preferred.1) What is quantity theory of money? Please elaborate in details.2) What are the factors t

Please answer the questions in a Word document, maximum 2 pages (include answer only). APA style is preferred.

1) What is quantity theory of money? Please elaborate in details.

2) What are the factors that shift aggregate demand (AD)?

Slide 52 

Positive   Shocks (Increase AD) (=   Higher Growth Rate of Spending)

A   faster money growth rate

Confidence

Increased   wealth

Lower   taxes

Greater   growth of government spending

Increased   export growth

Decreased   import growth

Negative   Shocks (Decrease AD) (=   Lower Growth Rate of  Spending)

A   slower money growth rate

Fear

Reduced   wealth

Higher   taxes

Lower   growth of government spending

Decreased   export growth

Increased   import growth