Sentences with phrase «aggregate demand»

"Aggregate demand" refers to the total amount of goods and services that people, businesses, and the government want to buy in a particular economy. It represents the combined demand for everything produced in an economy, including consumer spending, business investment, government spending, and net exports. Full definition
Thus, increases in aggregate demand for all housing types are equivalent with increases in the area's number of households.
Identifying locations with potential for increases in housing demand within an urban area, requires an understanding of how aggregate demand for specific types of property is distributed across competing locations.
But she did suggest that the case for stimulating aggregate demand is weaker now than it was a few months ago.
Some believe the demographic bubble implies reduced aggregate demand and slower economic growth lies ahead.
But the effect of the higher prices, assuming they are typically paid to suppliers elsewhere in the world, also acts somewhat like a tax on spending, hence aggregate demand falls.
In this kind of circumstance, it is not clear that boosting aggregate demand through fiscal stimulus is the right response.
Since the higher resource prices are paid to suppliers elsewhere in the world, this also acts somewhat like a tax on spending, hence aggregate demand falls.
The simple fact is that there is a need for more aggregate demand in the economy.
This can boost aggregate demand further, through increased export sales or, more simply, because existing export sales produce more revenue measured in domestic currency.
The role of the federal government should be to regulate aggregate demand to maintain full use of resources (more or less).
There is simply not enough aggregate demand in the economy and the prospects are not that certain.
We also control for the fraction of the population that is of school age, which captures aggregate demand for educational services.
Specifically, this lesson is for teaching aggregate demand and its different elements in the whole economy.
Collaboration can bring efficiencies and help communicate aggregated demand for products that can help drive availability of these products in the market.
This is directly supporting aggregate demand and is having some positive spin - offs elsewhere in the economy.
In turn, developments in aggregate demand, in conjunction with developments in aggregate supply, influence the level of inflation in the economy.
There are two factors at play here: the sluggish growth rate of aggregate demand abroad and the continuing impact of earlier dollar appreciation on U.S. export competitiveness.
Corporations as a whole cut back as aggregate demand drops.
And the G20 economies agreed to a coordinated fiscal stimulus in 2009, as global aggregate demand was weakening.
One way to interpret this figure is that the Treasury market was expecting weaker aggregate demand growth in the future and consequently lower inflation.
So stabilisation in response to aggregate demand shocks can be perfect, if the central bank wants it to be.
Weak residential construction has also weighed on aggregate demand over the first half of this year, although building approvals and liaison reports point to some stabilisation in the period ahead (Graph 5).
Answer the phone Mr. Flaherty the Governor would probably like more than a «bare - bones» budget in 2014 to deal with inadequate aggregate demand, excess supply, high unemployment.
On Maui, the utility will consider aggregated demand response resources as an alternative to transmission expansion.
Productivity growth is arguably sluggish due to weak aggregate demand growth.
Third, the Fed seems to be in the thrall of notions that might be right but do not to my knowledge have analytic support premised on the idea that the rate of change of interest rates as distinct from their level influences aggregate demand.
This puzzle generated a flurry of research and several Nobel prizes, and one of the things that came out is that increasing aggregate demand (expansionary fiscal policy and or expansionary monetary policy) will not offset a negative productivity shock.
Throttling aggregate demand slows the economy for everyone.
And whatever its uses in cases of insufficient aggregate demand, as the economist Stephen Gordon has lately reminded us, it is wholly inappropriate to invoke it against what is in reality a shock to aggregate supply: the sudden drop in the price of oil has taken a sizable bite out of Canada's productive capacity, just as the equally sudden spike in the price of oil did to the United States» economy in the 1970s.
Unfortunately, Mr. Flaherty is simply not prepared to do what is necessary to raise aggregate demand in the economy.
Imagine a US default, where aggregate demand drops across the world because the Treasuries in the banks of other nations are only worth 70 % of face value.
If, in fact, an increase in the minimum wage were to result in a net increase in nominal aggregate spending, then we could eliminate any shortfall in aggregate demand relative to aggregate supply by merely boosting the minimum wage to whatever level necessary to eliminate the gap.
Aggregate Supply and Aggregate Demand resource to teach students the entire topic.
In a credit - driven economy like ours, measuring the differences between various types of credit creation can give signals as to how the banks are faring, and how well aggregate demand will do in the intermediate term.
In the short run (months to perhaps several years), drops in consumption remove aggregate demand from the economy and affect the length and depth of recessions.
These two segments of aggregate demand reinforce each other because buying a house or an apartment triggers spending on consumer durable goods («big ticket» items) such as furniture, appliances and even automobiles because relocations typically change commuting patterns and lifestyles.
Although I am all in favor of stimulating aggregate demand if it is demonstrably below potential aggregate supply, it is not entirely clear to me how increasing government transfer payments will accomplish this.
We believe the Fed became so focused on shoring up the financial system and worrying about rising inflation, that it lost sight of stabilizing aggregate demand.
In addition, we think the Fed has been equally clear that an inflationary fiscal package — particularly one that stimulates aggregate demand without also enhancing productivity — could prompt more aggressive monetary tightening.
The next most implicated is the macroeconomic regulatory system, governing the management of aggregate demand through fiscal and monetary policy to control inflation and unemployment.
When aggregate demand in the economy is weak, for example, inflationary pressures are likely to be diminishing and monetary policy can be eased, which will give a short - term stimulus to economic activity.
If we assume that hysteresis is in fact present to some degree after deep recessions, the natural next question is to ask whether it might be possible to reverse these adverse supply - side effects by temporarily running a «high - pressure economy,» with robust aggregate demand and a tight labor market.
Niskanen sees the primary duty of the Fed as maintaining «a steady increase in aggregate demand consistent with a low target rate of inflation.»
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