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AGGREGATE DEMAND: The total (or aggregate) real expenditures on final goods and services produced in the domestic economy that buyers would willing and able to make at different price levels, during a given time period (usually a year). Aggregate demand (AD) is one half of the aggregate market analysis; the other half is aggregate supply. Aggregate demand, relates the economy's price level, measured by the GDP price deflator, and aggregate expenditures on domestic production, measured by real gross domestic product. The aggregate expenditures are consumption, investment, government purchases, and net exports made by the four macroeconomic sectors (household, business, government, and foreign).
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                           PRIVATIZATION: The process of converting or "selling off" government-owned assets, properties, or production activities to private ownership. Privatization is usually undertaken either to generate revenue for the government or as part of an overall laissez faire approach to the economy. After several decades of increasing government control of productive activities, privatization came into vogue in the 1980s, along with business deregulation and an overall movement toward greater use of markets.The logic behind privatization is two-fold: As such, it seems natural to give the private sector a shot at running activities that the public sector does not run very well. The downside of privatization is that many government functions just cannot be performed efficiently by the private sector, which is why, after thousands of years of civilization, government functions continue to exist and persist.Privatization actually reflects one end of a continuum of political views that are in a constant tug of war. At the other end is nationalization. As much as anything else, these two alternatives reflect the ongoing tug and pull of competing political views. - Liberals tend to favor paternalistic government allocation and ownership of resources. Nationalization is a better fitting pursuit for their philosophy.
- Conservatives, in contrast, tend to favor market allocation and private ownership of resources. Privatization is their end of choice.
However, given the efficiency of competitive markets, the necessary functions of government, and the ever present fifth rule of imperfection, neither end is likely to perpetually dominate the other.
Recommended Citation:PRIVATIZATION, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: December 13, 2025].
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The average length of a "business lunch" is about 36 minutes.
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"Follow effective action with quiet reflection. From the quiet reflection will come even more effective action. " -- Peter F. Drucker, author
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PPP
Purchasing Power Parity
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