In economics, effective demand (ED) in a market is the demand for a product or service which occurs when purchasers are constrained in a different market. It contrasts with notional demand, which is the demand that occurs when purchasers are not constrained in any other market. In the aggregated market for goods in general, demand, notional or effective, is referred to as aggregate demand. The concept of effective supply parallels the concept of effective demand. The concept of effective demand or supply becomes relevant when markets do not continuously maintain equilibrium prices.[1][2][3]
^Hal Varian, 1977. "Non-Walrasian equilibria," Econometrica, April, 573-590.
^Robert W. Clower, 1965. "The Keynesian Counter-Revolution: A Theoretical Appraisal," in F.H. Hahn and F.P.R. Brechling, ed., The Theory of Interest Rates. Macmillan. Reprinted in Clower, 1987, Money and Markets.pp. 34-58.
^Robert Barro and Herschel Grossman, 1976. "Money, Employment, and Inflation, Cambridge Univ. Press.
In economics, effectivedemand (ED) in a market is the demand for a product or service which occurs when purchasers are constrained in a different market...
given time. It is often called effectivedemand, though at other times this term is distinguished. This is the demand for the gross domestic product of...
practical claims, such as that it can compensate for capitalism's inherent effectivedemand gap. Proponents of economic democracy generally argue that modern capitalism...
given time. The relationship between price and quantity demand is also called the demand curve. Demand for a specific item is a function of an item's perceived...
in standard of living, inflation and labour-saving techniques (33). Effectivedemand refers to the intentions of a consumer to purchase a product based...
theory Deadweight loss Economic surplus Effectivedemand Effect of taxes and subsidies on price Elasticity Excess demand function Externality Guanzi (text)...
users and consumers. Effectivedemand management follows the concept of a "closed loop" where feedback from the results of the demand plans is fed back into...
investment or consumption), and many of the theoretical ideas he proposed (effectivedemand, the multiplier, the paradox of thrift), had been advanced by authors...
In monetary economics, the demand for money is the desired holding of financial assets in the form of money: that is, cash or bank deposits rather than...
intervention to ensure effectivedemand. Effectivedemand are levels of consumption that corresponds to the level of production. If effectivedemand is achieved...
can be effective again. So, if any of the conditions necessary for the equivalence does not hold, countercyclical fiscal policy can be effective. Controlling...
Recommends[clarification needed] strengthening automatic stabilisers to control demand-pull inflation, rather than relying upon discretionary tax changes Issues...
the legal obligation to return funds held in demand deposits immediately upon demand (or 'at call'). Demand deposit withdrawals can be performed in person...
inflation are widely attributed to fluctuations in real demand for goods and services (also known as demand shocks, including changes in fiscal or monetary policy)...
productivity and effective supply" as the economy recovered in 2013. Aggregate demand Aggregation problem Disequilibrium Economic surplus Effectivedemand Excess...
generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various events, such as a financial crisis...
percent from a loan and the inflation rate is also 8 percent, then the (effective) real rate of interest is zero: despite the increased nominal amount of...
Keynesian theory.: 526 In Keynes' theory, aggregate demand - by Keynes called "effectivedemand" - was key to determining output. Even if Keynes conceded...
investment the perceived default probability of the borrower supply and demand in the market the amount of collateral special features like call provisions...
(1936) and a central tenet of Keynesian economics. See Principle of effectivedemand, which is an affirmative form of the negation of Say's law. Keynes's...
theory that is proposed. Increased wages are believed to be more effective in boosting demand for goods and services than central banking strategies, which...
this "real demand" curve based on derived demand), and a separate "effectivedemand" curve, which summarizes the amount of medical care demanded at particular...
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