| 21. | Sismondi also contributed a great deal to economics with his thoughts on aggregate demand.
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| 22. | The wage adjustments were too large, increasing aggregate demand excessively and creating inflationary pressures.
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| 23. | With other sources of aggregate demand blocked, this actually hurts profitability by lowering demand.
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| 24. | Hence, any factor that increases aggregate demand can cause inflation.
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| 25. | Consequently, with reduced private investments, spiraling deflation can cause a collapse in aggregate demand.
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| 26. | With the onset of the recession, the UK government lead calls to stimulate aggregate demand.
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| 27. | It involves relationships between economic aggregates such as national income, government expenditure and aggregate demand.
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| 28. | However, the economy and economics is about aggregate demand.
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| 29. | Finally, cyclical unemployment ) co-exists for a long time with a shortage of aggregate demand.
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| 30. | We want aggregate demand to be growing below production by the end of the year,
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