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Politics : PRESIDENT GEORGE W. BUSH
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To: Neocon who wrote (36371)9/14/2000 12:36:22 AM
From: Brumar89  Read Replies (1) of 769667
 
On nominal vs real numbers - gee, seems like real would show true growth better than nominal, as the nominal numbers include inflation in addition to real growth.

If demand had been driving it, the price of goods and services would have been bid up, thus yielding a higher nominal demand. Instead, the supply of goods and services was increasing and being absorbed by the economy . . .

It should be kept in mind that supply and demand are two sides of the same coin. If supply of goods and services increase and are they absorbed by the economy, demand had to have increased as well. Remember that old graph of supply and demand - where the lines intersect is where supply = demand.

There's no point in continuing this. You probably think I just don't get it. I think you probably don't have a good understanding of some of the terms you're using and are just parroting the Cato arguments.
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