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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Brumar89 who wrote (36704)	9/14/2000 1:02:32 AM
From: Neocon	Read Replies (1) \| Respond to of 769667

I will try one more time, though you needn't respond. A demand driven economy bids up the price of goods and services, and therefore produces inflation. A supply driven recovery makes available more goods to buy, and therefore inflation drops. In the first instance, supply lags behind aggregate demand, in the second aggregate demand lags behind supply. It is the lag which is responsible for whether inflation goes up or down. The whole point is that the nominal numbers include inflation, and thus dramatize the relationships expressed above........[Edit] Since they mention inflation seperately, the use of nominal demand is unclear, and so it is a fault of presentation. But the main point is sound.......