loosecannon
Senior Member
- May 7, 2007
- 4,888
- 269
- 48
Purchasing power is income. Income is a function of productivity. The aggregate demand curve is function of income. Shifts in the aggregate demand curve are a function of several things, but if income were to collapse, the aggregate demand curve would shift downwards and to the left.
e=mc(2) was a clever trick.
Energy, matter and the speed of light were all defined in terms of one another without assigning a finite definition to any of the three, making them all relative to one another but still beyond the bounds of definition. Relativity.
That is the same trick you employed to define income, demand and productivity in terms of one another while avoiding an actual definition for any of the three.
I will stick to the textbook definition: "the ability and desire to purchase goods and services"