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AD CURVE: The aggregate demand curve, which is a graphical representation of the relation between aggregate expenditures on real production and the price level, holding all ceteris paribus aggregate demand determinants constant. The aggregate demand, or AD, curve is one side of the graphical presentation of the aggregate market. The other side is occupied by the aggregate supply curve (which is actually two curves, the long-run aggregate supply curve and the short-run aggregate supply curve). The negative slope of the aggregate demand curve captures the inverse relation between aggregate expenditures on real production and the price level. This negative slope is attributable to the interest-rate effect, real-balance effect, and net-export effect.
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                           PURE COMMAND ECONOMY: An economy, or economic system, that relies exclusively on governments to allocate resources and to answer all three questions of allocation. This theoretical ideal has no markets, government makes all allocation decisions. Then contrasting theoretical ideal is a pure market economy in which markets make all allocation decisions. | Economic Systems |  |
A pure command economy is a theoretical extreme on the spectrum of economic systems that does not actually exist in the real world. It does, however, provide a benchmark that can be used for comparison with real world economic systems. In pure command economies, governments force all allocation through involuntary taxes, laws, restrictions, and regulations. Governments set forth the laws and rules. If folks do not follow the rules, then they are punished. Governments can punish those who do not follow the rules because... well... because they are the governments. Given a choice, most humans probably would rather NOT pay taxes or have their cars safety inspected. They follow government rules because they have to, because that IS the law. The real world embodiment of a pure command economy is termed a command economy. The communistic/socialist economies of China and the former Soviet Union are primary examples of command economies. While, in theory, resource allocation could be undertaken exclusively through markets or governments, in the real world, all economies rely on a mix of both markets and governments for allocation decisions, what is termed a mixed economy.
Recommended Citation:PURE COMMAND ECONOMY, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2022. [Accessed: October 1, 2022].
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Today, you are likely to spend a great deal of time surfing the Internet seeking to buy either a package of 3 by 5 index cards, the ones without lines or a blue mechanical pencil. Be on the lookout for telephone calls from former employers.
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In 1914, Ford paid workers who were age 22 or older $5 per day -- double the average wage offered by other car factories.
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