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Macroeconomics. In economics, stagflation (or recession-inflation) is a situation in which the inflation rate is high or increasing, the economic growth rate slows, and unemployment remains steadily high. Stagflation, once thought impossible, [ 1] poses a dilemma for economic policy, as measures to reduce inflation may exacerbate unemployment.
Demand shocks may both decrease and increase inflation. So-called demand-pull inflation may be caused by increases in aggregate demand due to increased private and government spending, [80] [81] etc. Conversely, negative demand shocks may be caused by contractionary economic policy. Supply shocks may also lead to both higher or lower inflation ...
In economics, elasticity measures the responsiveness of one economic variable to a change in another. [1] If the price elasticity of the demand of something is -2, a 10% increase in price causes the quantity demanded to fall by 20%. Elasticity in economics provides an understanding of changes in the behavior of the buyers and sellers with price ...
The benchmark S&P 500 index is up 15% in the same time frame. Pras Subramanian is a reporter for Yahoo Finance covering the auto industry. You can follow him on Twitter and on Instagram .
Aug 07, 2024, 8:15 a.m. ET. Contents: Prepared Remarks. ... It's an important way to match supply and demand when demand spec quickly. ... Entire companies that will buy up AVs can be just like a ...
Supply creates its own demand. " Supply creates its own demand " is a formulation of Say's law. The rejection of this doctrine is a central component of The General Theory of Employment, Interest and Money (1936) and a central tenet of Keynesian economics. See Principle of effective demand, which is an affirmative form of the negation of Say's law.
In monetary economics, the demand for money is the desired holding of financial assets in the form of money: that is, cash or bank deposits rather than investments. It can refer to the demand for money narrowly defined as M1 (directly spendable holdings), or for money in the broader sense of M2 or M3 . Money in the sense of M1 is dominated as a ...
v. t. e. Keynesian economics ( / ˈkeɪnziən / KAYN-zee-ən; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomic theories and models of how aggregate demand (total spending in the economy) strongly influences economic output and inflation. [1] In the Keynesian view, aggregate demand does not ...