The total demand for final goods and services in an economy at a certain time and price level is known as aggregate demand. In other words, it is the number of goods and services in the economy that will be purchased at all the various possible price levels. Aggregate demand is known to be a downward sloping curve, because a larger quantity is demanded at lower price levels.
Aggregate demand is certainly something those entering into Company formation should familiarise themselves with, if their company will be providing either goods or services. And given our current economic situation, which is in a negative state at the moment, markets will surely see an even bigger demand for those goods and services on the lower price scale than there would be normally. Earlier this year, a conference at the Economic and Social Research Institute was told that in the absence of the possibility of devaluation of our currency, which was how Finland resolved their economic crash in the early 90's, the only option for Ireland will be deflation, an adjustment which they were told would be slow and painful.
It seems that Ireland might learn a lot by looking at the Finland situation since it bares a striking resemblance to our own, in the late 80's there occurred a rapid increase in output in the country with full employment and low public debt, quite similar to Ireland during the Celtic Tiger. So, it goes without saying that prospective business owners should make themselves aware of the possibility of deflation and how it might affect the service they wish to establish in the coming months and indeed years.
Article Source: http://EzineArticles.com/?expert=Brian_Walker_BL
Aggregate demand is certainly something those entering into Company formation should familiarise themselves with, if their company will be providing either goods or services. And given our current economic situation, which is in a negative state at the moment, markets will surely see an even bigger demand for those goods and services on the lower price scale than there would be normally. Earlier this year, a conference at the Economic and Social Research Institute was told that in the absence of the possibility of devaluation of our currency, which was how Finland resolved their economic crash in the early 90's, the only option for Ireland will be deflation, an adjustment which they were told would be slow and painful.
It seems that Ireland might learn a lot by looking at the Finland situation since it bares a striking resemblance to our own, in the late 80's there occurred a rapid increase in output in the country with full employment and low public debt, quite similar to Ireland during the Celtic Tiger. So, it goes without saying that prospective business owners should make themselves aware of the possibility of deflation and how it might affect the service they wish to establish in the coming months and indeed years.
Article Source: http://EzineArticles.com/?expert=Brian_Walker_BL
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