Final answer:
Changes in the growth rates of C, I, G, and NX in the AD-AS model are interpreted as changes in Aggregate demand components, shifting the AD curve right or left affecting output and price levels.
Step-by-step explanation:
In the AD-AS model, changes in the growth rates of consumption spending (C), investment spending (I), government spending (G), and net exports (NX) are interpreted as changes in C) Aggregate demand components. Changes in these components can result from personal choices, such as those driven by consumer or business confidence, or policy choices, such as alterations in government spending and taxes. These changes shift the AD curve; if components rise, the curve shifts right and leads to a higher equilibrium quantity of output and price level. Conversely, if components fall, the curve shifts left, reducing the equilibrium quantity of output and the price level. The impact on output versus price level depends on the intersection of the AD curve with the AS curve.