Now that the global world is growing again; one question that is coming to mind is: “Is it supply or demand determined?”
The answer is demand determined for the moment, meaning supply adjusts to demand. Economist Tinbergen’s adjustment between demand and supply is in place, which is government regulating demand and supply to achieve the target/s of growth. All the recent government stimulus by developed economies are in mind.
Once the economy recovers and governments withdraw their support from the economy, the answer should change to supply determined, meaning price and market mechanism without state intervention.
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