What variables cause the \(A D\) curve to shift? For each variable, identify whether an increase in that variable will cause the \(A D\) curve to shift to the right or to the left and also indicate which component(s) of GDP- consumption, investment, government purchases, or net exports-will change.

There are a couple of factors that affect the AD curve. These are: (1) The Wealth Effect (consumption changes), (2) The Interest-Rate Effect (investment changes), (3) Changes in government policies (government purchases changes), and (4) Changes in Net Exports.

Next, let us ascertain whether an increase in these factors shifts the AD curve to the right or left:1. Wealth Effect (Consumption): If people's wealth increases, they tend to consume more. Therefore, an increase in wealth will shift the AD curve to the right.2. Interest-Rate Effect (Investment): If the interest rates fall, corporations and individuals are more likely to take loans for investments, which increases overall investment. Thus, a decrease in interest rates (increase in Investments) shifts the AD curve to the right.3. Government policies (Government Purchases): An increase in government spending also shifts the AD curve to the right.4. Net exports: An increase in net exports (exports minus imports) also pushes the AD curve to the right.

Regarding the components of GDP affected by these variables, for the Wealth Effect, the component of GDP affected is consumption. For the Interest-Rate Effect, it's investment. Government policies affect government purchases. Finally, net exports affect the net exports component of the GDP.