Sentences with phrase «aggregate demand if»

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.

Not exact matches

If the Fed were to respond to weaker real output resulting from a negative supply shock by taking actions to stimulate aggregate demand, higher inflation would be the ultimate result, not higher real output.

But if everyone does that, aggregate demand plummets.

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.

So stabilisation in response to aggregate demand shocks can be perfect, if the central bank wants it to be.

Even if part of this decline was driven by a heightened liquidity premium the implication is the same: it indicates an increased demand for highly liquid and safe assets which, in turn, implies less aggregate nominal spending.

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.

Never mind that Nobel prize - winning economists point out repeatedly that national finances are not like household finances, because maintaining aggregate demand keeps people in jobs, this is a simile that the Conservatives continue to flog, even if it does remind some of us of the worst bits of the 1980s.

Don't get drawn too far on the service shift — a lot of it stems from a) reclassification i.e. if payroll staff are in - house = manufacturing, if «outsourced» = service, b) productivity gains in manufacturing, and c) aggregate demand.

I say that if the demand for energy is modelled using market exchange rates, the choice of income aggregate doesn't matter much.