Aggregate demand is an economic term that encompasses the total amount of goods and services consumers want at an established overall price level and within a given period of time. Supply chain ...

Get the latest news and market analysis from our in-house experts. Real GDP shows the value of an economy’s output, adjusted for any changes in inflation, interest rates or other factors which could ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Michael Boyle is an experienced financial ...

This is a preview. Log in through your library . Abstract The paper argues that the derivation of the aggregate demand curve in the new Keynesian literature is insufficient to provide the theoretical ...

It has been more than 80 years since the beginning of the Keynesian revolution in economics with the publication of John Maynard Keynes’ The General Theory of Employment, Interest, and Money in 1936.

The individual demand curve represents the quantity of a good that a consumer will buy at a given price, holding all else constant. For example, consumer A might buy zero oranges at $1 each, one ...

The standard Blanchard-Quah (BQ) decomposition forces aggregate demand and supply shocks to be orthogonal. However, this assumption is problematic for a nation with an inflation target. The very ...

My first bit of evidence [that the short run is over] is corporate profits. They are at an all time high, around two-and-a-half times higher in nominal terms than they were during the late 1990s, our ...

LAST week, Christina Romer (head of Barack Obama's Council of Economic Advisors) gave a talk on the state of the economy, and particularly on unemployment. She joked that her preferred title for the ...