and aggregate demand decreases. Say's law, the basis of supply-side economics, ruled until the 1930s and the advent of the theories of British economist John Maynard Keynes. Keynes argued that ...

It may also be hard to determine why there are shifts in aggregate demand because of how economic factors are connected. What ...

Demand-pull inflation is a tenet of Keynesian economics that describes the effects of an imbalance in aggregate supply and demand. When the aggregate demand in an economy strongly outweighs the ...

The policy rate was jacked up to 22% in a short period. The policy rate affects aggregate demand and aggregate supply simultaneously. However, the impact on aggregate supply is faster than the ...

Recent studies show that uncertainty shocks have quantitatively important effects on the real economy. This paper examines one particular channel at work: the supply of credit. It presents a model in ...