FACULTY OF BUSINESS

ACCOUNTING SCHOOL

ACADEMIC REPORT

AGGREGATE DEMAND

COURSE:

MICROECONOMICS

AUTHOR:

SALDAÑA MANOSALVA, LILI JHOVANITA

TEACHER:

EMILIO PAREDES TORRES

Moyobamba - Peru

(2023)

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table of Contents
I. INTRODUCTION....................................................................................................................3
II. DEVELOPMENT....................................................................................................................4
III. BIBLIOGRAPHICAL REFERENCES ANNEXES..............................................................5

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 I. INTRODUCTION

The purpose of the cultural economy is to study the behavior in areas of

competence of cultural companies, but it also implies a sense of public policy that
allows the approach to the consumer; that is, to the public, either from the material
(a forum, theater, public thoroughfare) or immaterial (artisanal processes, uses
and customs, folk music, among others). It has very close links with behavioral
economics since it requires the development of cultural companies and the
generation of consumers of this type of good, forging proposals that benefit both
those who invest in this type of event and cultural workers, which is a matter of
microeconomics.
Aggregate demand is a fundamental part of the economic analysis that we have
been taught for more than a century. Indeed, the equilibrium curve in the goods
market that is painted with a negative slope in the space that the aggregate offer
responds endogenously to the demand, that is, the entrepreneurs increase the
supply of goods when the prices are reduced, because when they increase the
real money supply, the LM curve shifts down in space, which lowers the interest
rate and consequently increases aggregate demand and output.
The labor market is a critical element in the socioeconomic development of any
country. According to the way in which its economic system and its
macroeconomic objectives are constituted, economic policy actions are generated.
However, in systems where there are significant limitations such as little access to
technology, and with a high degree of integration or dependence with another or
other economies, in which their economic policies are based on attracting external
resources, the results of their economic policy actions will be limited.
One of the main objectives of the government is the eradication of unemployment
or keeping it at a minimum level possible, to try to obtain social welfare in this way.
However, this is a constant problem since there are factors (economic, financial
and/or political) that lead many companies to abandon economic activity, causing
an increase in the number of unemployed people, as is also the case of
dissatisfaction of the people who work their job from the supply of demand.

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 II. DEVELOPMENT

The objective is to determine an aggregate demand model for the culture sector,
based on the calculation of a marginal propensity to consume and an interest rate
for cultural companies. To achieve the goal, the traditional macroeconomic
literature is considered to deduce the autonomous spending of the branch and,
with it, the curve of cultural goods. The presence of the money market curve is
also taken into account to obtain the stated purpose. Ordinary Least Squares
(OLS) are used and, in the case of heteroskedasticity, Weighted Least Squares
(MCP).
The labor situation in Peru has been improving in recent years, it is also given that
the situation of the growth of National Production has been increasing. This
research seeks to determine how the GDP components found by the expenditure
method (aggregate demand) affect the variations in national unemployment.
THE DEMAND ATTACKS

Aggregate demand is the total goods and services demanded by a country, at a

given price level, in a given period of time. And also, Aggregate demand is an
indicator used by central banks when they have to take monetary policy measures.
Monetary policy directly influences our lives, for example, with changes in interest
rates.

The aggregate demand equation is represented as follows: DA= C+I+G+XM=Y

Clearly, the definitions of the aggregate supply price and the aggregate demand
price are derived from the point of view of the entrepreneurs.

AGGREGATE DEMAND CURVE

The aggregate demand curve graphically represents all the combinations between
the price level and national output with the money market and the goods market.

In what the demand curve indicates the quantity demanded of goods and services
by all economic agents for each price level.

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III. BIBLIOGRAPHICAL REFERENCES ANNEXES

Corte-Cruz, PS (2019). Aggregate demand for culture in Mexico: propensity to

consume and interest rate for cultural companies. CEA Magazine , 5 (10),
151-165. https://doi.org/10.22430/24223182.1331
The integration of the theories of aggregate demand and the monetary circuit ...
(s.f.).
https://web.s.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=0&sid=7fb2278b-
196b-458d-b3fd-0c539819c7d6%40redis

Olivas, ERJ (s. f.). mg. Victor Manuel Romero Farro President .
https://repositorio.ucv.edu.pe/bitstream/handle/20.500.12692/2355/
Novoa_OMJ.pdf?sequence=1&isAllowed=y

Rivas, A. MM (2019). The principle of effective demand. Effective demand is a

point! PAPELES , 11 (21), Article 21.
https://doi.org/10.54104/papeles.v11n21.584
Rodríguez Ramos, C., Alemar , E., Rodríguez Ramos, C., & Alemar , E. (2022).
Dynamic effects of aggregate supply and demand impulses, and
productivity on labor demand: The case of Puerto Rico. Economics: Theory
and Practice , 56 , 105-130.
https://doi.org/10.24275/etypuam/ne/562022/rodriguez

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