In this kind of circumstance, it is not clear that
boosting aggregate demand through fiscal stimulus is the right response.
This can
boost aggregate demand further, through increased export sales or, more simply, because existing export sales produce more revenue measured in domestic currency.
Not exact matches
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.