Learn how changes in aggregate demand influence the price levels of goods and services and why this relationship isn't always ...

Explore how fiscal policy and monetary policy drive aggregate demand, influencing economic growth through spending, taxation, and money supply changes.

In an article in this journal (fall 1985), Hansen, McCormick, and Rives argued that the derivation of the aggregate demand curve rested on a flimsey foundation. Barron and Lynch defend the commonly ...

John Maynard Keynes’ book The General Theory of Interest, Employment, and Money is one of the classic works of the twentieth century. Keynes published his book in 1936 during the midst of the Great ...

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 ...

Sovereign debt crises coincide with deep recessions. I propose a model of sovereign debt that rationalizes large contractions in economic activity via an aggregate-demand amplification mechanism. The ...

Elasticity is an economic concept that demonstrates the effect of a product price change on demand. For example, a product such as milk is an inelastic product, since a price change will not ...

The economic laws of demand and supply determine the markets for products and their equilibrium prices. However, economic forces can cause shifts in the demand and supply curves for a product and ...