26- Real balances will rise, and so too will aggregate demand .
27- How changes in money supply affect aggregate demand is a highly controversial issue.
28- Instead, Gosplan calculates aggregate demands for centrally planned products only.
29- Changes in aggregate demand would evoke quantity changes and not price changes.
30- In the short run, investment spending directly supports aggregate demand and growth.
31- These problems cannot be redressed by traditional aggregate demand policies alone.
32- So those people have less money to spend which depresses aggregate demand .
33- Credit, money and aggregate demand .
34- Tax cuts allow consumers to increase their spending, which boosts aggregate demand .
35- Not cutting essential services that prop up aggregate demand which needs a boost .
36- It thus tackles head on the problem of excess or deficient aggregate demand .
37- aggregate demand rises from AD to AD'.
38- The reason is that the increase in money supply will raise aggregate demand .
39- Equilibrium in the goods market requires that aggregate demand should equal national income.
40- Keynesians argue that monetary policy is an unreliable means of controlling aggregate demand .
41- Fewer people will apply for loan and aggregate demand will get reduced.
42- Governments implement fiscal policy by adjusting spending and taxation policies to alter aggregate demand .
43- As the aggregate demand curve is shifted outward, the general price level increases.
44- A higher disposable income means increase in aggregate demand, which should be offset by an increase in production, thereby increasing GDP.
45- However, the problem here is not aggregate demand failure.
46- In this case, the velocity or demand of money determines aggregate demand.
47- With other sources of aggregate demand blocked, this actually hurts profitability by lowering demand.
48- In the short term, if saving falls below investment, it can lead to a growth of aggregate demand and an economic boom.
49- Inflation can also occur when the economy 'overheats' because of excess aggregate demand (this is called Demand-pull inflation ).
50- But what happens to the real wage rate following a fall in aggregate demand?
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