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38615 results in Cambridge Textbooks

Page 921 of 1931

  • 3 - Aggregate Supply and Short-Run Equilibrium

  • Lawrence S. Davidson, Indiana University, Andreas Hauskrecht, Indiana University, Jürgen von Hagen
  • Book:
    Macroeconomics for Business
    Published online:
    20 November 2019
    Print publication:
    06 February 2020, pp 88-127

  • Summary

    Macroeconomic policy debates tend to focus on aggregate demand. When output is considered too low or unemployment is rising, policymakers, the media, and the public call on the Fed to cut interest rates or on the federal government to provide stimulus. When inflation is going up, the Fed is told to put it under control. We want fast solutions and the way to get them is by managing aggregate demand. Therefore, most of this book is devoted to aggregate demand.

  • 2 - Aggregate Demand

  • Lawrence S. Davidson, Indiana University, Andreas Hauskrecht, Indiana University, Jürgen von Hagen
  • Book:
    Macroeconomics for Business
    Published online:
    20 November 2019
    Print publication:
    06 February 2020, pp 53-87

  • Summary

    Economics is all about supply and demand. If the demand for Jack Daniel’s rises relative to supply, we predict that the price of Jack Daniel’s will rise and its quantity sold in the market will increase. Supply and demand, therefore, are common tools in the economist’s toolbox. This tool allows us to analyze why prices and quantities change and to think of both the reasons for these changes and what policies might be used to combat them if deemed necessary.

  • 4 - Monetary Policy and Aggregate Demand

  • Lawrence S. Davidson, Indiana University, Andreas Hauskrecht, Indiana University, Jürgen von Hagen
  • Book:
    Macroeconomics for Business
    Published online:
    20 November 2019
    Print publication:
    06 February 2020, pp 128-154

  • Summary

    A country’s economy is continually buffeted by shocks to aggregate demand and aggregate supply. AD shocks come from households, firms, governments, and foreign buyers. They change their spending patterns because the causal variables discussed in Chapter 3 change and impact them. These changes in aggregate demand are often large and persistent enough to become the subject of economic policy. Should governments intervene in the economy and attempt to bring aggregate demand back to a normal and sustainable level, or one that the government deems more appropriate? If so, monetary and fiscal policies are often used to stabilize AD changes.

  • 5 - Fiscal Policy and Aggregate Demand

  • Lawrence S. Davidson, Indiana University, Andreas Hauskrecht, Indiana University, Jürgen von Hagen
  • Book:
    Macroeconomics for Business
    Published online:
    20 November 2019
    Print publication:
    06 February 2020, pp 155-179

  • Summary

    Fiscal policy refers to the government’s use of taxation, spending, and regulatory policies to achieve its economic and political goals. As with monetary policy, there are many issues and controversies that relate to the use of fiscal policy. Since these issues and controversies play out in the political arena daily, business planners need to pay attention, because the results will come to affect them. Fiscal policies of the past and expected policies of the future can have pronounced impacts on interest rates, spending, profits, exchange rates, and many other aspects of the business environment. This chapter develops the basic terminology, concepts, and theories that relate to fiscal policy. It explains how fiscal policy affects aggregate demand and how the government can use it to counteract business-cycle fluctuation.

Page 921 of 1931