The former determines the unit value of commodities, hence their production price, and the latter determines the discrepancy between actual supply and effective demand, hence the discrepancy between market price and production price.
32.
He consulted central and regional governments, primarily on labor market regulations and showing that supply side policies in situations of deficient effective demand caused slow growth, useless government spending and increasing public debt.
33.
"Seek to efficiently produce, transport and deliver energy and to promote more effective demand-side management while minimizing undesirable impact on the environment and climate, always taking into consideration the consequences for posterity ."
34.
And if firms are constrained by excess supply in the goods market, limiting how much goods they can sell, then their effective demand for labor will be less than their notional demand for labor.
35.
Keynes attempted to explain in broad theoretical detail why high labour-market unemployment might not be self-correcting due to low " effective demand " and why even price flexibility and monetary policy might be unavailing.
36.
Strangely enough, although the title of the chapter of " General theory " is " Principle of effective demand ", the " principle " of effective demand is not stated in detail in the chapter.
37.
Strangely enough, although the title of the chapter of " General theory " is " Principle of effective demand ", the " principle " of effective demand is not stated in detail in the chapter.
38.
Akamatsu sees a counter-movement in other parts of the world, centered on the rising production of gold, which, according to him, leads to an increase in effective demand and further stimulates exports of the innovating nation.
39.
The consumer sets MB = MC out of pocket, and so the " effective demand " will have a separate relationship between price and quantity than will the " marginal benefit curve " or real demand relationship.
40.
Malthus is credited by Keynes as a predecessor for his views on effective demand and, other than Malthus, Keynes did not credit the existence of other proponents of underconsumption, stating instead that Ricardo " conquered " English economics.
