| The reason, they believe, is that aggregate demand was growing by healthy amounts in those eras. |
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| The marginal costs of long-term wage contracts increase with variability in aggregate demand. |
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| Investment flows need not by themselves change the aggregate demand for goods and services. |
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| Readers will note our heavy implicit concentration on the future positioning and shape of the aggregate demand curve. |
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| Both aggregate demand and prices are in practice frequently subject to shocks. |
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| But inflation would result only if monetisation boosted aggregate demand enough to exceed aggregate supply. |
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| Should aid concentrate on infrastructure to restore aggregate demand quickly or on investment yielding long-term effects, such as education? |
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| Achieving the appropriate level of expenditure is an issue of aggregate demand management. |
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| It has a considerable impact on the conduct of monetary policy insofar as it affects aggregate demand through the wealth effect mechanism. |
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| A key player in this process is the business sector, because business creates jobs, supports aggregate demand and creates wealth. |
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| As we have seen, a number of factors can lead to increases in aggregate demand. |
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| Consequently, the average level of aggregate demand falls in the presence of an interest rate floor. |
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| Last year, I was too bullish on the economy, convinced that Terror War spending would cause enough increase in aggregate demand to jumpstart us out of the doldrums. |
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| The increased investment in new housing will exert a positive impact on aggregate demand and stimulate growth. |
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| Therefore, some suppliers will lower their prices, which in turn leads to an increase in aggregate demand. |
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| There is broad agreement on the need to rebalance aggregate demand across the world. |
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| These in turn depend upon the strength and stability of aggregate demand, and thus on the macroeconomic framework. |
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| In the past, attempts to manage aggregate demand through discretionary fiscal policy-making have been widespread but often counter-productive. |
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| What gives monetary policy some influence over real variables is the gradual adjustment of prices in markets for goods and services, which allows aggregate demand to deviate temporarily from long-run aggregate supply. |
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| For all the virtues of boosting aggregate demand through public sector wage stimulus, such an approach will have very little impact on the critical need to revitalize the eroded and destructed productive base. |
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| These excess money balances would therefore be spent and hence aggregate demand would rise. |
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| That is, for Keynesians, the money supply is only one determinant of aggregate demand. |
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| Keynesians emphasize reducing aggregate demand during economic expansions and increasing demand during recessions to keep inflation stable. |
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| In the short run, investment spending directly supports aggregate demand and growth. |
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| Generally, economists attribute the ups and downs in the business cycle to fluctuations in aggregate demand. |
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| The solution is to boost aggregate demand. |
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| More aggregate demand, not less, is required. |
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| Public infrastructure not only increases aggregate demand. |
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| These weights are based on a number of empirical studies that estimate the effect of changes in real interest rates and in the real exchange rate on real aggregate demand over six to eight quarters. |
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| When aggregate demand falls below the potential output of the economy, there is an output gap where some productive capacity is left unemployed. |
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| Tax cuts allow consumers to increase their spending, which boosts aggregate demand. |
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| The most common cause of inflationary or deflationary phases is when aggregate demand for goods and services does not move in line with the economy's production capacity. |
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| The sources of the contraction in spending in the United States varied over the course of the Depression, but they cumulated in a monumental decline in aggregate demand. |
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| In addition to providing both better and cheaper services to citizens, public authorities can use their purchasing power to aggregate demand and provide a crucial pull for new networks. |
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| Movements in real interest rates and the real exchange rate were not so collinear over the estimation period as to preclude estimation of their separate effects on aggregate demand. |
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| Reduced confidence could lead to a further decrease in aggregate demand through the postponement of business investment and purchases of many big-ticket consumer items. |
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| Others argue for maintaining purchasing power and aggregate demand. |
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| When cyclical unemployment is prevailing, the reason is not missing information about vacancies that cannot be filled or a mismatch of skills but a reduction of aggregate demand in the output market and rigid wages. |
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| Foreign demand: Changes in world energy prices have an impact on the aggregate demand of a given country's trading partners and, hence, on the demand for its exportable goods and services. |
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| Finally, in the presence of aggregate demand effects and liquidity effects, fiscal stimulus is all the more effective over the short term when it is financed by government debt issue. |
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| If required, these instruments could be used separately or in tandem to improve financial conditions in order to support aggregate demand and ultimately achieve the inflation target. |
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| The objective was not to bring down the stock market but rather to bring the growth of aggregate demand and aggregate supply into better alignment. |
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| Discretionary measures, i.e. active changes to government revenue or expenditure, can affect economic growth and prices, via their effect on both aggregate demand and aggregate supply. |
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| These judgments include an assessment of the economic factors affecting inflation, especially the strength of aggregate demand relative to aggregate supply. |
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| What is crucial to the analysis of trend inflation is the extent to which monetary expansion accommodates or encourages a pace of aggregate demand that puts persistent pressure on aggregate supply. |
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| When evaluating the prospects for inflation, the Bank considers the key factors affecting the balance between aggregate demand and aggregate supply over the next four to six quarters. |
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| As a result of the current crisis, most countries have increased public expenditure and investments to strengthen aggregate demand, limit the depth of the recession and ensure a faster recovery. |
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| The measures addressing the current economic crisis are focused on sustaining aggregate demand and employment, as well as strengthening competitiveness. |
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| Finally, the empirical evidence suggests that monetary policy plays an important role in affecting short-term aggregate demand and inflation dynamics. |
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| Moreover, supporting low-income groups, which typically have a high propensity to consume, would help stimulate aggregate demand and restore confidence. |
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| As we have just seen, one of the indispensable factors for the functioning of aggregate demand effects is the sensitivity of household consumption demand to changes in their current income. |
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| Policies should be in synergy with the social goals of supporting the income of the most disadvantaged citizens, which in itself will assist stimulating aggregate demand. |
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| In this context, the conduct of monetary policy can be traced in part to an attempt to offset an insufficiency of global aggregate demand, aggravated by increasing income inequality within most countries. |
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| This stands in sharp contrast to a world where the most significant shocks faced by the authorities are the more familiar aggregate demand shocks. |
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| Keynes contended that aggregate demand for goods might be insufficient during economic downturns, leading to unnecessarily high unemployment and losses of potential output. |
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| Although the outlook for the next few years is better than it has been for some time, weak aggregate demand and noncyclical structural factors continue to hold it back. |
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| And even if Greece was able to pare down the debt without killing its economy through an acute aggregate demand shock, the country anyway has a huge competitiveness problem. |
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| Governments implement fiscal policy that influence macroeconomic conditions by adjusting spending and taxation policies to alter aggregate demand. |
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| Governments increase spending and cut taxes to boost aggregate demand. |
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| A credit crunch lowers investment and consumption and results in declining aggregate demand which additionally contributes to the deflationary spiral. |
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| Economist Joseph Stiglitz presented evidence in 2009 that both global inequality and inequality within countries prevent growth by limiting aggregate demand. |
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| Hence, any factor that increases aggregate demand can cause inflation. |
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| Aggregate demand has so far been sustained, in the main, by consumer spending and targeted government expenditure. |
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