A Reduction in Nominal Wages A reduction in nominal wages will limit the amount of personal income available, thus decreasing aggregate demand. Furthermore, short-run aggregate supply will follow, which will in effect further reduce demand.c. A Noticeable Improvement in TechnologyA good example will be the information technology revolution over the last two decades. We have seen an increase in demand for current goods based on new technology and a decrease in demand for obsolete goods. Eventually the economy reaches equilibrium and the new technology usually benefits most consumers.d. A reduction in net exports A rapid reduction in net exports could push the economy into a recessionary gap; because once manufacturers lose some of their market share, they are usually left with few choices. One of them is to reduce production and, in most cases, lay off some workers, which will lead to a reduction in disposable personal income, which will cause a reduction in aggregate demand and, once again, a decrease in aggregate supply. The multiplier influences aggregate demand in both directions; thus an initial reduction in spending will cause further reductions in spending over time