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Aggregate demand

Index Aggregate demand

In macroeconomics, aggregate demand (AD) or domestic final demand (DFD) is the total demand for final goods and services in an economy at a given time. [1]

72 relations: AD–AS model, Aggregate supply, Aggregation problem, Austrian School, Autonomous consumption, Consumables, Consumption (economics), Consumption function, Currency, Current account, Debt, Debt deflation, Debt relief, Deficit spending, Deflation, Economic bubble, Economic surplus, Effective demand, Excess demand function, Excess supply, Export, Factory, Financial crisis, Financial market, Friedrich Hayek, GDP deflator, Government, Great Depression, Gross (economics), Gross domestic product, Henry Hazlitt, Induced demand, Inflation, Interest rate, Investment, Involuntary unemployment, Irving Fisher, IS–LM model, Keynes effect, Keynesian economics, Macroeconomics, Marginal propensity to consume, Marshallian demand function, Microeconomics, Money, Money supply, Mundell–Fleming model, National Income and Product Accounts, Net worth, Output (economics), ..., Physical capital, Pigou effect, Post-Keynesian economics, Potential output, Price level, Private sector, Public expenditure, Real gross domestic product, Real versus nominal value (economics), Recession, Reproduction (economics), Scarcity, Shortage, Steve Keen, Supply and demand, Supply shock, Tax, The General Theory of Employment, Interest and Money, Theory, Velocity of money, Virtuous circle and vicious circle, Wall Street Crash of 1929. Expand index (22 more) »

AD–AS model

The AD–AS or aggregate demand–aggregate supply model is a macroeconomic model that explains price level and output through the relationship of aggregate demand and aggregate supply.

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Aggregate supply

In economics, aggregate supply (AS) or domestic final supply (DFS) is the total supply of goods and services that firms in a national economy plan on selling during a specific time period.

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Aggregation problem

An aggregate in economics is a summary measure describing a market or economy.

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Austrian School

The Austrian School is a school of economic thought that is based on methodological individualism—the concept that social phenomena result from the motivations and actions of individuals.

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Autonomous consumption

Autonomous consumption (also exogenous consumption) is the consumption expenditure that occurs when income levels are infinite.

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Consumables

Consumables (also known as consumable goods, nondurable goods, or soft goods) are goods that are intended to be consumed.

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Consumption (economics)

Consumption is the process in which consumers (customers or buyers) purchase items on the market.

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Consumption function

In economics, the consumption function describes a relationship between consumption and disposable income.

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Currency

A currency (from curraunt, "in circulation", from currens, -entis), in the most specific use of the word, refers to money in any form when in actual use or circulation as a medium of exchange, especially circulating banknotes and coins.

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Current account

In economics, a country's current account is one of the two components of its balance of payments, the other being the capital account (also known as the financial account).

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Debt

Debt is when something, usually money, is owed by one party, the borrower or debtor, to a second party, the lender or creditor.

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Debt deflation

Debt deflation is a theory that recessions and depressions are due to the overall level of debt rising in real value because of deflation, causing people to default on their consumer loans and mortgages.

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Debt relief

Debt relief or debt cancellation is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations.

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Deficit spending

Deficit spending is the amount by which spending exceeds revenue over a particular period of time, also called simply deficit, or budget deficit; the opposite of budget surplus.

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Deflation

In economics, deflation is a decrease in the general price level of goods and services.

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Economic bubble

An economic bubble or asset bubble (sometimes also referred to as a speculative bubble, a market bubble, a price bubble, a financial bubble, a speculative mania, or a balloon) is trade in an asset at a price or price range that strongly exceeds the asset's intrinsic value.

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Economic surplus

In mainstream economics, economic surplus, also known as total welfare or Marshallian surplus (after Alfred Marshall), refers to two related quantities.

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Effective demand

In economics, effective demand (ED) in a market is the demand for a product or service which occurs when purchasers are constrained in a different market.

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Excess demand function

In microeconomics, an excess demand function is a function expressing excess demand for a product—the excess of quantity demanded over quantity supplied—in terms of the product's price and possibly other determinants.

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Excess supply

In economics, an excess supply or economic surplus is a situation in which the quantity of a good or service supplied is more than the quantity demanded, and the price is above the equilibrium level determined by supply and demand.

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Export

The term export means sending of goods or services produced in one country to another country.

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Factory

A factory or manufacturing plant is an industrial site, usually consisting of buildings and machinery, or more commonly a complex having several buildings, where workers manufacture goods or operate machines processing one product into another.

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Financial crisis

A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value.

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Financial market

A financial market is a market in which people trade financial securities and derivatives such as futures and options at low transaction costs.

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Friedrich Hayek

Friedrich August von Hayek (8 May 189923 March 1992), often referred to by his initials F. A. Hayek, was an Austrian-British economist and philosopher best known for his defense of classical liberalism.

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GDP deflator

In economics, the GDP deflator (implicit price deflator) is a measure of the level of prices of all new, domestically produced, final goods and services in an economy.

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Government

A government is the system or group of people governing an organized community, often a state.

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Great Depression

The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States.

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Gross (economics)

No description.

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Gross domestic product

Gross domestic product (GDP) is a monetary measure of the market value of all final goods and services produced in a period (quarterly or yearly) of time.

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Henry Hazlitt

Henry Stuart Hazlitt (November 28, 1894July 9, 1993) was an American journalist who wrote about business and economics for such publications as The Wall Street Journal, The Nation, The American Mercury, Newsweek, and The New York Times.

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Induced demand

Induced demand, or latent demand, is the phenomenon that after supply increases, more of a good is consumed.

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Inflation

In economics, inflation is a sustained increase in price level of goods and services in an economy over a period of time.

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Interest rate

An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed (called the principal sum).

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Investment

In general, to invest is to allocate money (or sometimes another resource, such as time) in the expectation of some benefit in the future – for example, investment in durable goods, in real estate by the service industry, in factories for manufacturing, in product development, and in research and development.

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Involuntary unemployment

Involuntary unemployment occurs when a person is willing to work at the prevailing wage yet is unemployed.

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Irving Fisher

Irving Fisher (February 27, 1867 – April 29, 1947) was an American economist, statistician, inventor, and Progressive social campaigner.

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IS–LM model

The IS–LM model, or Hicks–Hansen model, is a macroeconomic tool that shows the relationship between interest rates (ordinate) and assets market (also known as real output in goods and services market plus money market, as abscissa).

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Keynes effect

The Keynes effect is the effect that changes in the price level have upon goods market spending via changes in interest rates.

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Keynesian economics

Keynesian economics (sometimes called Keynesianism) are the various macroeconomic theories about how in the short run – and especially during recessions – economic output is strongly influenced by aggregate demand (total demand in the economy).

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Macroeconomics

Macroeconomics (from the Greek prefix makro- meaning "large" and economics) is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole.

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Marginal propensity to consume

In economics, the marginal propensity to consume (MPC) is a metric that quantifies induced consumption, the concept that the increase in personal consumer spending (consumption) occurs with an increase in disposable income (income after taxes and transfers).

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Marshallian demand function

In microeconomics, a consumer's Marshallian demand function (named after Alfred Marshall) specifies what the consumer would buy in each price and income or wealth situation, assuming it perfectly solves the utility maximization problem.

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Microeconomics

Microeconomics (from Greek prefix mikro- meaning "small") is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.

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Money

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context.

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Money supply

In economics, the money supply (or money stock) is the total value of monetary assets available in an economy at a specific time.

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Mundell–Fleming model

The Mundell–Fleming model, also known as the IS-LM-BoP model (or IS-LM-BP model), is an economic model first set forth (independently) by Robert Mundell and Marcus Fleming.

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National Income and Product Accounts

The national income and product accounts (NIPA) are part of the national accounts of the United States.

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Net worth

Net worth is the value of all the non-financial and financial assets owned by an institutional unit or sector minus the value of all its outstanding liabilities.

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Output (economics)

Output in economics is the "quantity of goods or services produced in a given time period, by a firm, industry, or country", whether consumed or used for further production.

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Physical capital

In economics, physical capital or just capital is a factor of production (or input into the process of production), consisting of machinery, buildings, computers, and the like.

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Pigou effect

In economics, the Pigou effect is the stimulation of output and employment caused by increasing consumption due to a rise in real balances of wealth, particularly during deflation.

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Post-Keynesian economics

Post-Keynesian economics is a school of economic thought with its origins in The General Theory of John Maynard Keynes, with subsequent development influenced to a large degree by Michał Kalecki, Joan Robinson, Nicholas Kaldor, Sidney Weintraub, Paul Davidson, Piero Sraffa and Jan Kregel.

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Potential output

In economics, potential output (also referred to as "natural gross domestic product") refers to the highest level of real gross domestic product (potential output) that can be sustained over the long term.

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Price level

The general price level is a hypothetical daily measure of overall prices for some set of goods and services (the consumer basket), in an economy or monetary union during a given interval (generally one day), normalized relative to some base set.

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Private sector

The private sector is the part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the State.

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Public expenditure

Public expenditure is spending made by the government of a country on collective needs and wants such as pension, provision, infrastructure, etc.

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Real gross domestic product

Real Gross Domestic Product (real GDP) is a macroeconomic measure of the value of economic output adjusted for price changes (i.e., inflation or deflation).

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Real versus nominal value (economics)

In economics, a real value of a good or other entity has been adjusted for inflation, enabling comparison of quantities as if prices had not changed.

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Recession

In economics, a recession is a business cycle contraction which results in a general slowdown in economic activity.

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Reproduction (economics)

In Marxian economics, economic reproduction refers to recurrent (or cyclical) processes.

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Scarcity

Scarcity refers to the limited availability of a commodity, which may be in demand in the market.

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Shortage

In economics, a shortage or excess demand is a situation in which the demand for a product or service exceeds its supply in a market.

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Steve Keen

Steve Keen (born 28 March 1953) is an Australian economist and author.

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Supply and demand

In microeconomics, supply and demand is an economic model of price determination in a market.

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Supply shock

A supply shock is an event that suddenly increases or decreases the supply of a commodity or service, or of commodities and services in general.

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Tax

A tax (from the Latin taxo) is a mandatory financial charge or some other type of levy imposed upon a taxpayer (an individual or other legal entity) by a governmental organization in order to fund various public expenditures.

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The General Theory of Employment, Interest and Money

The General Theory of Employment, Interest and Money of 1936 is the last and most important book by the English economist John Maynard Keynes.

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Theory

A theory is a contemplative and rational type of abstract or generalizing thinking, or the results of such thinking.

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Velocity of money

Similar chart showing the velocity of a broader measure of money that covers M2 plus large institutional deposits, M3. The US no longer publishes official M3 measures, so the chart only runs through 2005. The term "velocity of money" (also "The velocity of circulation of money") refers to how fast money passes from one holder to the next.

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Virtuous circle and vicious circle

The terms virtuous circle and vicious circle (also referred to as virtuous cycle and vicious cycle) refer to complex chains of events that reinforce themselves through a feedback loop.

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Wall Street Crash of 1929

The Wall Street Crash of 1929, also known as Black Tuesday (October 29), the Great Crash, or the Stock Market Crash of 1929, began on October 24, 1929 ("Black Thursday"), and was the most devastating stock market crash in the history of the United States, when taking into consideration the full extent and duration of its after effects.

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References

[1] https://en.wikipedia.org/wiki/Aggregate_demand

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