Changes in aggregate demand, whether anticipated or unanticipated, have their greatest short-run effect on real output and employment, not on prices. Keynesians believe that, because prices are ...

The recent shift in monetary policy and the Trump administration’s economic agenda have raised concerns about inflationary ...

It expresses a direct relationship between what producers supply and what consumers demand in an economy and how that relationship affects the price of a specific product or service. Aggregate ...

Similarly, during economic downturns, when businesses and consumers close their wallets—aggregate demand is shrinking—governments ... Stabilization policies are important in the short run, because it ...