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  Encyclopedia of Keywords > Society > Economics > Aggregate Demand   Michael Charnine

Keywords and Sections
AGGREGATE DEMAND
AGGREGATE SUPPLY
PRICE LEVEL
DEMAND CURVE
EXPENDITURE
KEYNESIAN
SUPPLY CURVE
RELATIONSHIP BETWEEN
UNEMPLOYMENT
SPENDING
SHIFT AGGREGATE
Review of Short Phrases and Links

    This Review contains major "Aggregate Demand"- related terms, short phrases and links grouped together in the form of Encyclopedia article.

Definitions

  1. Aggregate demand is the total level of demand for goods and services in an economy.
  2. Aggregate demand is the sum of all demand in an economy. (Web site)
  3. Aggregate demand is the total demand for goods and services produced in the economy over a period of time. (Web site)
  4. Aggregate demand is a measure of month-to-month growth or contraction of consumer spending, often used as an indicator of economic prosperity. (Web site)
  5. Aggregate Demand is one of 51 key economics concepts identified by the National Council on Economic Education (NCEE) for high school classes. (Web site)

Aggregate Demand

  1. If this was the only effect, the aggregate demand curve in the diagram would be upward sloping.
  2. A decrease in government purchases or an increase in taxes shifts the aggregate demand curve to the left.
  3. Equilibrium price and quantity are found where the aggregate demand and supply curves intersect.

Aggregate Supply

  1. Model aggregate demand - aggregate supply (AD-AS) with perfectly inelastic (long-run period) and perfectly elastic (short-run period) aggregate supply. (Web site)
  2. Economists today reconcile these two views with the model of aggregate demand and aggregate supply introduced in Ch.9.
  3. Knowing what can cause changes in aggregate demand and aggregate supply helps explain causes of the business cycle.

Price Level

  1. The aggregate demand (AD) curve shows that as the price level drops, purchases of real domestic output increase.
  2. A reduction in aggregate demand causes a decline in real output rather than the price level because prices are -sticky- or inflexible downward.

Demand Curve

  1. Technically, the aggregate demand curve is found by drawing a line (or curve) through Points 1, 2, and 3 on Appendix Figure 11-1b.
  2. Figure 7-3 illustrates the aggregate demand curve for an economy. (Web site)
  3. Give three reasons why the aggregate demand curve slopes downward.

Expenditure

  1. The builders will have higher disposable income as a result, so consumption, hence aggregate demand will rise as well.
  2. Finally, expenditure on GDP obviously disregards the creation of credit money by banks and governments, which boosts aggregate demand.
  3. Equilibrium within the economy occurs where aggregate demand is satisfied by national output.
  4. Aggregate demand and its derivation from IS-LM model.
  5. B. Aggregate demand shifts and the aggregate expenditures model (Appendix Figure 11-2): 1.

Keynesian

  1. Macroeconomic theory today has harmonized the study of aggregate demand and supply with the study of money.
  2. Keynesian economics, which focuses on aggregate demand to explain levels of unemployment and the business cycle.
  3. The multiplier effect is a tool used by governments to restimulate aggregate demand.
  4. Since this idles capacity, investment also falls, leading to further reductions in aggregate demand.
  5. Without price changes to mitigate the effects of an aggregate demand change, the multiplier is at full strength.

Supply Curve

  1. Shifts in aggregate demand and aggregate supply curves.
  2. An increase in aggregate demand in the steep portion of the aggregate supply curve.
  3. Use these sets of data to graph the aggregate demand and aggregate supply curves.

Relationship Between

  1. Normally there is a negative relationship between aggregate demand and the price level. (Web site)
  2. We do not know the exact relationship between fiscal policy and aggregate demand. (Web site)
  3. In the next section we will develop the relationship between macroeconomic policies and changes in aggregate demand during the business cycle. (Web site)

Unemployment

  1. Particularly influential were the ideas of John Maynard Keynes, who used the concept of aggregate demand to explain fluctuations in output and unemployment.
  2. If they did, aggregate demand would expand, and unemployment rates might drop without inflation.
  3. During booms, there is a high level of aggregate demand, inflation increases, unemployment falls, and growth in national income accelerates.
  4. Then, if unemployment rises, we can usually assume that it is caused by insufficient aggregate demand. (Web site)
  5. The statement is true, although the magnitude of the effect on unemployment can vary considerably, particularly with decreases in aggregate demand.

Spending

  1. Therefore, they posit that as the quantity of money increases, total spending increases and the aggregate demand for consumers' goods increases as well.
  2. The multiplier has been used as an argument for government spending or taxation relief to stimulate aggregate demand. (Web site)
  3. Demand-pull inflation: inflation caused by increases in aggregate demand due to increased private and government spending, etc.
  4. Naive Keynesian analysis, by contrast, sees an increased deficit, with government spending held constant, as an increase in aggregate demand.

Shift Aggregate

  1. That is, for Keynesians, the money supply is only one determinant of aggregate demand. (Web site)
  2. With the "supply side" at a fixed level, the amount of inflation is then determined by aggregate demand.
  3. These excess money balances would therefore be spent and hence aggregate demand would rise.
  4. This is because economic growth is represented by an extension in aggregate demand, or a shift to the right of the aggregate demand curve. (Web site)
  5. Therefore it might be argued that an "aggregate demand curve" does not even exist in an (income,spending)-space.

Categories

  1. Encyclopedia of Keywords > Society > Economics
  2. Glossaries > Glossary of Macroeconomics /
  3. Books about "Aggregate Demand" in Amazon.com

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  Short phrases about "Aggregate Demand"
  Originally created: June 14, 2008.
  Links checked: May 24, 2013.
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