Sentences with phrase «of aggregate demand»

The economy slowly recovers from the recession, but does not fully recover until all firms have adjusted their price to the new level of aggregate demand.

In a nutshell, Secular Stagnation posits that the global economy suffers from a structural lack of aggregate demand and a chronic excess of desired savings over desired investment; this results in permanently low levels of economic growth, inflation and interest rates.

Outside of the mining sector, the general improvement in productivity growth may have been in response to a range of competitive pressures coming to bear during a period of weak growth of aggregate demand.

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.

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.

Both the Bank and the Government's response to this shortage of aggregate demand have been to try and engineer a lower dollar to help exports, particularly exports of manufactured exports.

Suppose a country faces an insufficiency of aggregate demand and below - target inflation, but can generate the demand needed to close the gap and push inflation up to target only by fostering a rise in private sector leverage.

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.

This was due to «the effects of spending cuts themselves — including job losses, increased welfare spending and reduction of aggregate demand.»

They can affect saving and spending behaviour of firms and households, as well as cash flow, the supply of credit, asset prices and the exchange rate, all of which affect the level of aggregate demand.