Wall Street Journal article - Aggregate Demand - Andy Pasztor, "Europe Aims to Make Big Satellites," The Wall Street Journal, June 16, 2005, p. B5.

Summary This article talks about the competition that is going to be taking place involving technological satellites. Currently the United States holds the bar for commercial telecommunications satellites and Europe is gaining ground for developing and launching a new generation of high-powered spacecrafts. The satellites will be aimed at improving internet access and also those of military applications. Definition of the Principle The new satellite competition illustrates the determinant of expectations of Aggregate demand. Aggregate …

…price level increase boosted consumption and inevitably pushed aggregate demand out to AD2. An increase in quantity was not possible because of the fixed nature of the long run supply curve. If the demand for improved satellite communication continues to increase, the price level will continue to rise, thus causing inflation. <Tab/> Y1<Tab/><Tab/>Real Output Aggregate Demand for Improved Satellite Communications