The aggregate supply curve is a concept in macroeconomics that, with the addition of the aggregate demand curve, shows the equilibrium level of prices and quantity in an economy. It is also used to ...

John Maynard Keynes’ book The General Theory of Interest, Employment, and Money is one of the classic works of the twentieth century. Keynes published his book in 1936 during the midst of the Great ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Aggregate demand is the total demand for all ...

In an article in this journal (fall 1985), Hansen, McCormick, and Rives argued that the derivation of the aggregate demand curve rested on a flimsey foundation. Barron and Lynch defend the commonly ...

Discover how the Federal Reserve influences aggregate demand through interest rate adjustments and why fiscal policy might offer more direct impacts on spending.

Elasticity is an economic concept that demonstrates the effect of a product price change on demand. For example, a product such as milk is an inelastic product, since a price change will not ...