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AGGREGATE DEMAND DETERMINANTS: An assortment of ceteris paribus factors that affect aggregate demand, but which are assumed constant when the aggregate demand curve is constructed. Changes in any of the aggregate demand determinants cause the aggregate demand curve to shift. While a wide variety of specific ceteris paribus factors can cause the aggregate demand curve to shift, it's usually most convenient to group them into the four, broad expenditure categories -- consumption, investment, government purchases, and net exports. The reason is that changes in these expenditures are the direct cause of shifts in the aggregate demand curve. If any determinant affects aggregate demand it MUST affect one of these four expenditures.

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STRIKE: An agreement of workers, usually the members of a union, to stop working. The objective of a strike is to encourage an employer to raise workers' wages or to improve working conditions. Strikes can be a powerful tool for unions to overcome the market control of employers or to gain a negotiating edge in collective bargaining. They can also create frustrating production bottlenecks that are ultimately suffered by underappreciated consumers.

     See also | union | market control | collective bargaining | lockout | boycott | arbitration | mediation | wildcat strike | sympathy strike | general strike | labor slowdown |


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REQUIRED RESERVES

The reserves (vault cash and Federal Reserve deposits) that banks are required by government to keep to back up deposits. The primary use of required reserves is to process daily checkable deposit transactions. The government regulator in charge of setting reserve requires is the Federal Reserve System. Required reserves are usually in the range of 3 to 10 percent for checkable deposits and substantially less (0 percent) for savings deposits. Any legal reserves held by banks over those required to back deposits, termed excess reserves or free reserves, are available for interest-generating loans.

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Today, you are likely to spend a great deal of time strolling through a department store looking to buy either handcrafted decorations to hang on your walls or throw pillows for your bed. Be on the lookout for fairy dust that tastes like salt.
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There were no banks in colonial America before the U.S. Revolutionary War. Anyone seeking a loan did so from another individual.
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