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ADVISORY COUNCILS, FEDERAL RESERVE SYSTEM: Three support committees that provide feedback to the Board of Governors of the Federal Reserve System to assist in its assorted regulatory responsibilities, including Federal Advisory Council, Thrift Institutions Advisory Council, and Consumer Advisory Council. The Federal Advisory Council is a broad ranging council comprise of commercial bankers. The Thrift Institutions Advisory Council is comprised of representatives of thrift institutions. The Consumer Advisory Council is comprised of consumer credit representatives.

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CREATIVE DESTRUCTION: A notion put forth by Joseph Schumpeter that economic growth is the result of technological change and the innovations of new goods and services that emerge from the ashes of obsolete industries. This proposition indicates that economic progress is the result of fundamental changes in the structure of the economy and that capitalism is not a static, unchanging economic structure, but rather a dynamic, evolving system.

     See also | economic growth | technology | innovation | capitalism | structural unemployment | institution | infrastructure | business cycle |


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CREATIVE DESTRUCTION, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: July 18, 2025].


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AGGREGATE DEMAND SHIFTS

Changes in the aggregate demand determinants cause the aggregate demand curve to shift. The mechanism is comparable to that for market demand determinants and market demand. There are two alternatives--an increase in aggregate demand and a decrease in aggregate demand. An increase in spending by any of the four sectors--household, business, government, and foreign--shifts the aggregate demand curve to right. A decrease in spending by these four sectors shifts the aggregate demand curve to left.

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