Monetary Policy
"In South Africa, the interest rates decisions are taken by the South African Reserve Bank’s Monetary Policy Committee (MPC)." (TradingEconomics) The interest rate used to average around 13%. But as of 2014 it is at it's all time high, a 23.99%. Which a huge jump from 2012 being the low 5%.
Since this high interest was declared last month, this Aggregate Demand chart is with 2013 interest rates which were low. This makes the AD shift to the left and the Aggregate Supply does not move either. |