Financial Management

Armia P. Leonardo

AGGREGATE DEMAND AND SUPPLY

Effect of change in:

Production

Core of any

business or the

HEART of

any business.

Five big categoriesLabor

Capital

Land

Intermediate Inputs

Business know-how

labor֎ refers to the input supplied by the

various types of workers that enable the

business to function.

֎ it can be measured either by

The number of workers

Total number of hours worked.

land

actual

ground used by

the business.

Capital

Intermediates inputsrefers to any goods and

services purchased from other

business and used up in production.

examples

Business know-how includes all the

knowledge and

technology

necessary for

the production

process.

Business cycle

is a fluctuation in aggregate

economic output that last for several

years

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