What causes aggregate demand to increase?

Aggregate demand is based on four components. These are: consumption, investment, government spending and net exports. The equation for this is AD = C + I + G + (X-M). Net exports is the amount of exports minus the amount of imports. If consumption increases i.e. consumers are spending more, therefore aggregate demand for goods and services will increase. Additionally, if investment increases i.e. if there is a fall in interest rates, then production will increase as technology improves and output increases. Therefore, demand will rise. Next, an increase in government spending i.e. investment in infrastructure or education, will increase productivity and also increase demand for materials. Finally, if net exports are positive then the country is exporting more than it is importing. As a result, demand for goods and services is higher and thus AD rises.