According to him, the gap is caused due to excess demand in both the goods and factor market.
Then there would be no excess demand for imported goods.
Then came the problems with the website in the second phase, which were brushed off as simply the result of excess demand.
The excess demands in different markets can influence each other.
If the current market price was $3.00 - there would be excess demand for 8,000 units, creating a shortage.
There are policy solutions for the problem of excess demand, chief among them higher fuel economy standards.
Low interest rates caused a chronic excess demand of debt.
Indeed, as a result of an excess demand for their skills, enforced breaks in working are rare.
"Price increases are caused by short supply and excess demand."
But what if the excess demand is for money, because people are hoarding it?