Sentences with phrase «potential aggregate supply»

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

Potential supply in some areas of the economy falls, but aggregate demand will probably rise rather than fall, due to the terms of trade gain, and it is more likely that there will be a problem of inflation in the non-traded sector.
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