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1 What are the determinants of aggregate demand?

2 It may therefore produce greater uncertainty about aggregate demand.

3 Aggregate demand comprised two basic elements, investment and consumption.

4 How responsive is it to changes in aggregate demand?

5 This intermediate variable then affects aggregate demand.

6 This policy would be used to stimulate aggregate demand to reduce the unemployment caused by these structural changes.

7 This will raise aggregate demand directly and, by increasing total injections, will have a multiplier effect on income.

8 Thus, in this model, even anticipated movements in aggregate demand may affect the level of output.

9 As a consequence the equilibrium level of aggregate demand will fall.

10 And he measures the unpredictability of aggregate demand in the ith country by the variance of.

11 Controlling aggregate demand through controlling interest rates is made even more difficult as a result of fluctuations in the demand for money.

12 In this sense the more predictable aggregate demand is, the more efficient the economy is.

13 Thus if it is aggregate demand that requires controlling, monetary policy is a poor weapon to do this.

14 These random movements in aggregate demand are of course unpredictable and exhibit no clear pattern.

15 Real wage cuts, by reducing aggregate demand, raise the level of Keynesian unemployment.

16 This would reduce aggregate demand directly and thus reduce the transactions demand for money.

17 From the 1970s onwards governments restricted aggregate demand by a variety of means.

18 Changes in money supply affect aggregate demand in three stages: 1.

19 What is the relationship between money supply and aggregate demand?

20 Shifts in aggregate demand will affect real output if they are random and unpredictable.

21 This means that injections exceed withdrawals and the total value of output is less than the economy's aggregate demand.

22 The higher is,(www.Sentencedict.com) the higher is consumption expenditure and the higher is the level of aggregate demand.

23 A rise in government expenditure adds directly to aggregate spending and hence will tend to increase the equilibrium level of aggregate demand.

24 Thus a rise in real government expenditure shifts the aggregate demand curve to the right.

25 Thus a rise in the price level leads to a fall in the equilibrium level of aggregate demand.

26 Condition 1 Equilibrium in the goods market requires that aggregate demand should equal national income.

27 The variable we are interested in here is the variable which has caused the shift in the aggregate demand curve.

28 One obvious policy for the achievement of this objective is for government to stimulate aggregate demand by some means or other.

29 In practice, governments can also use monetary policy and exchange rate policy to influence the level of aggregate demand.

30 National expenditure, then, can be called actual expenditure, while aggregate demand can be called planned expenditure.