Group items tagged

This article refers to aggregate demand in 2010 and it states that India's fiscal and monetary policies had saved India from slipping onto another recession. Firstly the article states that India relies heavily on domestic demand because it cannot heavily rely on export and therefore they needed the measures to increase aggregate demand. This increase in aggregate demand, even though it has not been mentioned, can be assumed to shift the demand curve to the right and therefore more real output is demanded at every price level.

This article talks about how Fresno's supply of the raw material required to make concrete, asphalt, road base and other building products is decreasing quickly. Since this raw material is used by a majority of industries, the decreased supply will have a significant effect.

This article is about how the aggregate supply in Fresno County is reducing due to the lack of reserves of raw materials such as mines. The aggregate reserves is less than 11 percent of the 50 year demand, and mining operations are estimated to have less than 10 years to end. If mines can run out, so can oil and gas. We should be alarmed that our aggregate supply of country might also decrease due to lack of oil.

This article talks about how businesses are failing to take advantage of the aggregate demand. There is available demand (maybe hard to see) and companies, by taking too long to hire, are missing out on the demand and, hence, potential profit. 

When it comes to the reasons of deflation most of the economists see it as a monetary phenomenon which is affected by demand and supply. If the supply of money is more than demand then the value of money increases and prices go up as a consequence. When the supply of the products are higher than demand it results with the mass production which leads to the fall of prices. Some people believe that the deflation occurs because of the mass production and falling the aggregate level of demand. The biggest effect of deflation is unemployement. Deefletion is more serious and dfficult than inflation. To prevent deflation first is give an upward push to the aggreagte demand by increasing government spending or the second they can increase the money supply by decreasing cash reverse ratio.

When it comes to the deflation some of the economists believe that it is a monetary phenomenon which is affected by supply and demand. The reasons that leads to deflation are if supply of money is less than its demand than the value of money increases and the prices would go up. If the supply of the product is more tha its demand then it will lead to the mass production which the large amount of products will lead the prices to fall immidietly. The biggest effect of deflation is unempoyment. Deflation is more diffucult and serious than inflation. To prevent deflation first give an upward push to the aggregate demand by increasing government spending or the secong they can increase the money supply by decreasing cash reserve ratio.

This article takes about the Reserve Bank has turned to a growth. The author explains how the aggregated demand (even not visible) isn't the main factor.

This article is fairly recent and introduced me to another way of measuring economic growth in industries. the IIP stands for the Index for Industrial Production and it is discussed in the article that this value has corresponded to what has been expected, a negative number that is close to zero. This however is because there are many factors that are affecting aggregate supply, such as wage price inflation and the increase in land, a factor of production. However the author doesnt seem to be too worried about aggregate supply, rather He is worried that aggregate demand is on its way down.

This article talks about an increase in wages in India and that land prices is a key factor in wage changes. Also they are talking about a reserve bank, how it turned to grow and essential role of aggregate demand in it operating.

This is a great article because it discusses how aggregate demand relates to other barometers of economic health when it comes to a nation, such as the unemployment rate. 

The article is talking about the economy of US right now. The aggregate demand is far lower than potential and government is cutting expenditure rapidly. However, the author thought that's not the right way of doing it. Although the money is short, government is still supposed to take necessary actions to induce recovery.

The article is talking about with residential and commercial construction activity at a crawl, having enough aggregate might not seem like a major issue. But experts warn it may be a problem once the economy is back at full steam at. The current rate of consumption, the San Diego region will run out of aggregate sand, gravel and crushed stone in about 8 1/2 yearsOne of the problems here is that the county has an extreme shortage of high- quality sand.

A shortfall in overall demand for products may cause our economy from growing and strengthening. As a result, the recession from all around the world is only deepening and worsening. Unemployment is at an all-time high and thus people do not have money to purchase products. This results in a shortfall in demand and a drop in aggregated demand.

This article mainly discusses the economic policies of Representative Paul Ryan involving his concerns that continuing budget deficits will eventually lead to high rates of inflation. The author evaluates a theory regarding the importance of government policy on the price level of the economy. The view states that there is only one point of equilibrium in the macroeconomy where Aggregate Supply will equal Aggregate Demand, and the changing policies of the government play a crucial role in meeting that equilibrium by affecting not only the value of business assets but also people's expectations.

This article states that the aggregate demand has been expanding at a steady pace, and this has resulted to an expansion of manufacturing as well. Because the "growth in orders and sales show manufacturing is on the mend," we can see that demand is rising because companies usually buy inventory in line with demand.

The primary reason unemployment remains high is a lack of demand. An aggregate demand shortfall is exactly the kind of problem monetary policy can address. Thus, we need powerful and continuing monetary stimulus to move toward maximum employment and price stability. The following is adapted from a presentation by the president and CEO of the Federal Reserve Bank of San Francisco to The Forecasters Club in New York, New York, on February 21, 2013.

This article discusses the options that Reserve Bank of India governor Duvvuri Subbarao faces regarding how to handle the current issue of slow economic growth in the country. The author argues that a lack of aggregate demand is not to blame for the economic issues, so attempting to increase demand through lower interest rates, for example, is not the correct way to go about solving the issue. Instead, he points to fundamental issues in the management of the country's economy that have led to an unstable condition.

Japan is facing deflation, and it will effect the consumer confidence because of the exchange rate, this will cause a downward slope in the aggregate demand to shift to the left.

This article briefly goes over the possibility of Apple wanting to sell a lower priced iPhone (considerably lowered price) at the same time as it comes out with a new model. This is iterating as the mass consumer is no longer able to keep up with the $600 every 6months tat Apple cost them. Thus it has been rumored that they will do this in order to maintain the overall supply and demand of the cell phone.

This article discusses the common trade-off between unemployment and inflation. In Europe, the Central Bank is expected to lower interest rates, a monetary policy strategy, in order to aid with the current issue of low inflation and high unemployment. Decreasing interest rates has the general effect of increasing Aggregate Demand in an economy, and according to the relationship between these two aspects of macroeconomics this increase is likely to increase inflation while also reduce unemployment as real output increases.