aggregate demand

But if it does not, the resulting lack of global aggregate demand relative to supply will lead to a weaker recovery of global growth.

To get out of the basic aggregate-demand dilemma, a country must either give up one of the two goals or add more policy tools.

The Federal Reserve should not make a credible commitment to future inflation as a means of stimulating aggregate demand.

It may have fallen a little short on the immediate crisis around toxic debt around the credit markets, certainly around aggregate demand.

he argument about the aggregate demand side is academic, in the negative sense of the word.

The direct result of these scrambles is a credit crunch and a squeeze on aggregate demand that is forcing Europe into recession.

In order to satisfy the citizen day by day aggregate demand, starts to let loose the citizen to leave country gradually the traveling.

When the government gives a household a dollar back in taxes, the dollar might be saved, which does not add to aggregate demand.

In terms of its direct impact on aggregate demand it is a stretch to call this a programme for growth .

But since expanding aggregate demand is precisely the goal of the interest rate cut, that incentive is not a bug but a feature!

The effect of deflation in reducing aggregate demand, known as debt deflation, probably played a significant role in the Great Depression.

Fiscal deficits have been allowed to rise and interest rates to fall to stimulate aggregate demand.

He argued that it was the government's duty to relieve the plight of the jobless by increasing aggregate demand for goods and services.

How Fiscal Policy Influences Aggregate Demand Fiscal policy influences saving, investment, and growth in the long run.

But inflation would result only if monetisation boosted aggregate demand enough to exceed aggregate supply.

The proponents of stimulus argue that the losses in aggregate demand following the global financial crisis must be reversed.

Timely and targeted fiscal stimulus can add to aggregate demand in a way that supports private consumption during a critical phase.

Such payments provide crucial support to the long-term jobless and help to prop up aggregate demand.

If all households try to save more, a short-run result could be lower aggregate demand and thus lower national income.

b. Suppose a wave of business pessimism reduces aggregate demand. Show the effect of this shock on your diagram from part (a).

Keynesians emphasize reducing aggregate demand during economic expansions and increasing demand during recessions to keep inflation stable.

b. What additional effects follow this initial effect? What is the total effect of the tax cut on aggregate demand?

In the public ownership, the expansion of consumption and investment is the root cause of the aggregate demand expansion.

"The current system contributes to global instability, it contributes to the insufficiency of global aggregate demand, " Mr Stiglitz said.

No reliable estimates exist on the number of prostitutes in the United States or aggregate demand for their services.

Which policy will stimulate greater spending by consumers? Which policy will have the greater impact on aggregate demand? Explain.

If so, then it is time to stop pump-priming aggregate demand while blocking consolidation and restructuring of the financial system.

Companies will not increase production or build new capacity while the state of future aggregate demand remains uncertain.

When desired spending changes, aggregate demand shifts, causing shortrun fluctuations in output and employment.

According to conventional new Keynesian analysis, sticky prices are the ultimate market imperfection that makes aggregate demand matter.

The realisation of this growth potential will depend, however, on how aggregate demand is managed.

For the U. S. economy, the most important reason for the downward slope of the aggregate-demand curve is the interestrate effect.

Indeed, I believe that things are even worse: as long as aggregate demand remains low, we cannot even tell which pieces are right side up.

As for the 'stimulus' package, both its size and structure were inadequate to offset the enormous decline in aggregate demand.

The shorter-term challenge is to sustain aggregate demand, as Keynes would have recommended.

No matter what the source of aggregate demand in the long-run, without investment there is no growth.

Losers would likely cut their spending by more than gainers would increase their spending, so aggregate demand could plummet.

When desired spending changes, aggregate demand shifts, causing short-run fluctuations in output and employment.

second, "rebalancing aggregate demand across countries" .

Despite higher aggregate demand, industrial production was roughly flat over the following year.

The third is the aggregate demand relation, which relates output growth to the rate of growth of real money balances.

It makes impossible the necessary combination of global rebalancing with sustained aggregate demand.

The essence of aggregate demand is greater than the total social supply.

Keynesian economics focuses on aggregate demand to explain levels of unemployment and the business cycle.

Monetary and fiscal policy can stabilize aggregate demand and, thereby, production and employment.

Cutting income taxes will simultaneously shift aggregate demand and aggregate supply to the right.

The aggregate demand for labour and goods and services is much less than the potential supply.

Under this pegged-but-adjustable regime, countries managed aggregate demand to keep imports about equal to export earnings.

How Fiscal Policy Influences Aggregate Demand In the short run, fiscal policy primarily affects the aggregate demand.

Investment is one component of aggregate demand, along with domestic consumption and net exports.

In the absence of effective monetary policy offsets, one would expect aggregate demand to weaken, possibly sharply.

Moreover, spending and taxing policies work together to increase or decrease aggregate demand .

This shows that the supply ability increases a lot, thus, the change of aggregate demand will has little pressure on inflation.

Every extra percentage point of saving reduces annual spending by about $109 billion, so aggregate demand contracted violently.

Policymakers have since preferred to tweak aggregate demand via interest rates rather than taxes.

Economic downturns, Mr. Keynes and Mr. Samuelson taught us, occur when the aggregate demand for goods and services is insufficient.

The greater the aggregate demand for goods and services, the greater is the economy's output, and the higher is the overall price level.

The cause of unemployment was inadequate aggregate demand.

Since it isn't, and because income and aggregate demand growth are weak, the likelihood of rising general inflation is low.

When the economy slows and jobs are shed, the state spends more on unemployment benefits, helping to support aggregate demand.

More technically, we look at the demand for output and speak of the components of the aggregate demand for goods and services.

Increasing aggregate demand is supposed to increase output growth by increasing labor input.

The two upward sloping lines are actual nominal GDP (or total spending or aggregate demand) and the nominal GDP trend.

This supported consumption and thus helped maintain the aggregate demand for goods and services.

Many factors influence aggregate demand besides monetary and fiscal policy.

Jianeng is involved in the business world, although the aggregate demand will be stable, but there is still a challenge.

Demand-pull inflation is caused by increases in aggregate demand due to increased private and government spending, etc.

If increased spending is inadequate, government can step in to simulate aggregate demand.

The problem: to raise China's domestic aggregate demand, especially consumption.

The situation reverses, Keynesian theory says, only when some event or policy increases aggregate demand.

Between 2001 and 2005, investment generated a little more than half of the expansion in aggregate demand.

That has weakened aggregate demand by depressing home-buying and reducing house prices.

and parameters in the aggregate demand equation and aggregate supply equation.

However, it is not clear that increasing government expending is the best way to foster aggregate demand.

A negative interest rate would certainly encourage people to borrow and spend, thereby expanding aggregate demand.

The OECD also said stimulus measures are still 'critical to cushion the fall in aggregate demand.

Hence, any factor that increases aggregate demand can cause inflation.

Finally, Basel's effect on the economy, and in particular on aggregate demand, could be severe.

Aggregate demand is falling sharply below aggregate supply.

Economic slowdown means social decline in aggregate demand.

If policymakers expand aggregate demand, they can lower unemployment, but only at the cost of higher inflation.

This actually reduces Eurozone aggregate demand and adds to the debt deflation we are seeing there.

Shifting income from those who would spend it to those who won't lowers aggregate demand.

And the transmission of credit, by which aggregate demand and supply could more easily bootstrap each other up, is broken.

It requires aggregate demand to return to, and exceed, potential output.

If a government's deficit leads to higher aggregate demand, companies may find it more attractive to adopt and develop new technologies.

From the perspective of global economic recovery, higher commodity prices caused by more aggregate demand are good news.

If they contract aggregate demand, they can lower inflation, but at the cost of temporarily higher unemployment.

There is only one kind of fiscal policy that can hope to bring about desired changes in aggregate demand .

Budget cuts weaken GDP growth by shrinking aggregate demand.

This is the case, for instance, for most aggregate demand shocks, e. g those produced by contractionary Keynesian fiscal policies.

More details about aggregate demand are given in later chapters.

A, the aggregate demand curve to shift to the right and inflation to rise.

Aggregate demand and aggregate supply would chase each other downwards.

This reduction in long-term rates might spur aggregate demand.

D the aggregate demand curve to shift to the left and inflation to fall.

According to Keynes, the root cause of economic downturns is insufficient aggregate demand.

To Stimulate Aggregate Demand via Stock Market?

The current Keynesian mindset rightly observes that we have a shortage of aggregate demand.

Policy can manage aggregate demand in order to offset this inherent instability and reduce the severity of economic fluctuations.

Even halving its external surplus would add only 0. 4 per cent to aggregate demand in the rest of the world.

Somavia. "We are facing a world of deficient aggregate demand amidst large unmet needs and continued high unemployment. "

What causes the lags in the effect of monetary and fiscal policy on aggregate demand?

It now wants them to deflate their way to prosperity in a world of chronically weak aggregate demand.

a. What is the initial effect of the tax reduction on aggregate demand?

The balance of aggregate demand structure is very important to the sustainable development of national economy.

Higher consumer spending expands aggregate demand further, raising the G. D. P. yet again. And so on.

And it has to focus on adding to aggregate demand quickly.

Using this approach, we can abstract from fluctuation in Aggregate Demand .

The direct cause of formation of business cycles is that aggregate demand doesn't comply with aggregate supply.

But the key point is that higher aggregate demand didn't significantly expand the amount of work that was done.

In Hong Kong, as elsewhere, productivity increases have significantly surpassed the growth of aggregate demand in the economy.

On China's the Causes of Structural Inflation and Insufficient Aggregate Demand and Its Solutions

the aggregate demand and supply of the economy that causes a positive relationship between

Analysis of The Relation of Import, Export and Economic Growth Using the Model of Aggregate Demand and Aggregate Supply

Determined by Effective Aggregate Demand and Aggregate Supply

On Realizing Modes of Equilibrium of Aggregate Supply and Aggregate Demand

An Aggregate Demand Forecasting Model on the Residence of Chongqing Main City Zone

model of aggregate demand and aggregate supply aggregate-demand curve

HOW MONETARY POLICY INFLUENCES AGGREGATE DEMAND

Monetary easing has raised expected aggregate demand

Aggregate Demand, Aggregate Supply, and the Phillips Curve

aggregate demand and supply equilibrium

Analysis of Aggregate Demand Effects of National Debts

The Influence of Monetary and Fiscal Policy on Aggregate Demand

Agenda notes aggregate demand function

Equilibrium in Economy and Aggregate Demand

Study on Aggregate Demand Shocks of Public Emergencies Based on Long-run Recursive Identification

Model of aggregate supply and aggregate demand

Aggregate Demand and Supply Analysis

a shift in aggregate demand

Aggregate Demand Analysis on Economic Growth in Hong Kong