Profit margins decreased on large vehicles due to increased incentives (in the form of rebates or low interest financing) to offset declining demand.

The result of a decrease in supply and an increase in demand is higher prices.

Of course, the effects spread through the economy as demand for cars falls, demand for steel also falls, and steel workers are laid off.

Fifth, in the long run, a weaker dollar decreases supply and increases demand.

This illustrates a fundamental point in the short run, reduced economic activity is the principle way of lowering oil demand.

These losses then translate into reduced demand for American or German machine tools.

This illustrates a fundamental point in the short run, reduced economic activity is the principle way of lowering oil demand.

Workers bargain for money wages, and a reduction in their money incomes might leave total demand too low to employ all those willing to work.

Central banks respond to lowered demand by reducing interest rates and to higher expected inflation by raising interest rates.

The resulting weakness of the US economy will mean lower US import demand.

Low interest rates strengthen the ability to pay, and thus boost demand.

When countries suffer from low investment demand, freeing up capital inflows does not do much good.

To manage exorbitant demand for financial and physical assets, China s leaders must address its root cause the low cost of capital.

The main reason for the lag is not simply low demand or large debts.

It is also worthy of note that the price of DDT has risen over the last couple of years and this may be a trend that persists as a reduced demand erodes the economies of scale in a shrinking production.

And declining economic activity in the rest of the world is lowering demand for US exports.

And if all countries pursue austerity simultaneously, lower demand for each country s goods will lead to lower domestic and foreign consumption, leaving all worse off.

Vigilance had traditionally been associated with low cognitive demand and vigilance decrement with a decline in arousal pursuant to the low cognitive demand, but these views are no longer widely held.

The fall in aggregate demand while potential aggregate supply has been rising because of overinvestment by China and other emerging markets will sharply reduce inflation.

Lower demand for Greek debt caused its price to fall, meaning that its yield in terms of market interest rates rose.

First, it makes consumers anxious and depresses demand.

However, many economies in the ESCAP region have relied on American import demand as an important driver of growth, which would be choked off by a sizeable fall in the dollar.

If they raise their prices, they receive the full financial gain, while any loss implied by a decline in demand is distributed among all sellers.

On the contrary, the larger the fall in domestic demand in response to a cut in government expenditure, the more imports will fall and the stronger the improvement in the current account and thus ultimately the reduction in the risk premium will be.

If progress is not made in reducing the projected fiscal imbalances and limiting the growth of bank reserves, reduced demand for dollar assets could cause the dollar to fall more rapidly and the interest rate on dollar securities to rise.

Demand is therefore being drained out of the eurozone economies, with stronger external demand, stemming from the euro s depreciation against other major currencies, unable to offset the effect on growth.

Reducing this to 20 would spark an impressive increase in demand and employment across many industries.

As the private sector deleverages and attempts to rebuild its balance sheets, consumption and investment demand have collapsed, bringing output down with them.

These measures, plus a reduction in tax revenues, should reduce the primary surplus and contribute to reviving demand.

That notion has now been turned on its head as economic growth has stalled, falling import demand from trade partners has caused economic woes to spread and deepen.

Otherwise, outsourcing merely reduces demand for domestic labor, just like other efficiency gains.

Falling consumer demand need not cause a recession, since other parts of aggregate demand may rise to counteract this effect.

Moreover, during Earth Hour, any significant drop in electricity demand will entail a reduction in CO2 emissions during the hour, but it will be offset by the surge from firing up coal or gas stations to restore electricity supplies afterwards.

They would always see and want to grasp the benefits of lower interest rates and a little more demand pressure more production, more employment, higher wages, and higher profits in the short run.

Any lower price in euros would cause excess global demand for oil, while a price above 75 euros would not create enough demand to absorb all of the oil that producers wanted to sell at that price.

Restoring America s savings investment balance implies a reduction in global aggregate demand of around 800 billion.

That means that oil prices have increased in other countries, which should have reduced, not increased, demand.

The legalization of abortion on request in South Africa in 1998 saw abortion related deaths drop by 91 .

Of course, the effects spread through the economy as demand for cars falls, demand for steel also falls, and steel workers are laid off. But unemployment is most pronounced in the construction and automobile sectors, or in regions where house prices rose particularly rapidly.

Hence demand for commodities, which has been driven by emerging market growth, has fallen sharply, and help decrease global inflation.

Ultimately, reducing wages, public services, and household income impedes human development, threatens political stability, lowers demand, and delays recovery.

Large increases in public and private expenditures will therefore be required in many regions of the world to counteract falling demand.

With rebalancing will come a decline in China s surplus saving, much slower accumulation of foreign exchange reserves, and a concomitant reduction in its seemingly voracious demand for dollar denominated assets.

On the supply side, permanently lower output makes fiscal adjustment even more compulsory but, on the demand side, a weak private economy lacks the resilience needed to weather fiscal retrenchment.

Since the amount of foreign reserves available to defend a weak currency (a currency in low demand) is limited, a currency crisis or devaluation could be the end result.