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A country may be extremely small in area but still have a large effective demand.
They effectively reduce to just one force: the level of effective demand.
However, the historical sections and the theory of effective demand are presented very well.
According to many analysts, deficiency of effective demand is the most fundamental economic problem.
The constrained or effective demand curve for labour is in Figure 5.9.
Value plus purchasing power in the hands of the consuming public constitutes effective demand.
It is often called effective demand, though at other times this term is distinguished.
As an instrument to maintain effective demand in an economy such long-term spending is highly ineffective.
Effective demand are levels of consumption which corresponds to the level of production.
Firms decline to take on more labour because the effective demand for their goods is deficient.
But in what way do variations in effective demand alter the real wage rate?
In the postwar years, sugar prices fell sharply as world supply exceeded effective demand.
Likewise, effective demand is negatively correlated with the utilization rates of labor and capital.
In other words, effective demand is conditioned by actual trading in the labour market.
First, the state must meet the ever-increasing requirements for effective demand generated by the capitalist mode of production.
Existence of enlarged, sustained effective demand for the product of key sectors.
Thus money which might have Been spent in the domestic economy contributes, instead, to the level of effective demand in another country's economy.
Real GDP is equal to effective demand according to the equation above.
It is the largest part of aggregate demand or effective demand at the macroeconomic level.
Under such deficiency of effective demand, analysts generally agree that labor does not earn enough to buy what enterprises produce.
Money is effective demand, and the means of reclaiming that money are prices and taxes.
The concept of effective demand or supply becomes relevant when markets do not continuously maintain equilibrium prices.
It could create employment and goose aggregate effective demand, getting us out of this disaster of an economy.
The only U.S. action they feared was an effective demand reduction program.
If effective demand is achieved then there is no overproduction because all inventories are sold.