Boosting Economy: How Demand Management Can Tackle Unemployment and Stimulate Growth
The term "demand management" originated after World War II and is based on the idea that in capitalist economies, there can be a lack of demand for goods and services, leading to unemployment. To address this, governments can increase spending or reduce taxes, while monetary authorities can lower interest rates to boost investment. Conversely, if there is too much demand, policies can be used to limit it. In the United States, "demand management" did not completely replace the term "stabilization policy".