When effective demand falls short of productive capacity, the result is unemployment and depression; conversely, when demand exceeds the capacity to produce, the result is inflation.
Underlying Japan's accelerating frugality is a "deflationary gap" of 40 trillion yen in the Japanese economy, a situation where total demand falls short of what an economy produces.
As the workforce grows, capital accumulates and technology advances, this limit expands over time.String theoryIn a recession demand falls short of supply, leaving a sorry trail of unemployed workers, shuttered factories and unexploited innovations.
(They're still low by historical standards). As demand fell short of supply, double-digit price increases declined into the low single digits, then went negative everywhere except in the South.
If, in a given period, aggregate demand exceeds the income payments made by firms in producing that period's output, firms will be expanding in the next period; if aggregate demand falls short of the income payments made, firms will contract in the next period.
"Even if demand falls short of predictions, it still represents very fast growth".
In these early years, actual demand fell short of matching inherent desire for organic products because of limited availability, uninspiring quality, poor awareness and high pricing.
Authorities in Beijing -- where residents must enter a lottery for license plates -- recently held a special auction for electric-vehicle license plates but found the demand fell short of supply.
Similarly, if the amount of money demanded falls short of the amount supplied, an individual may decide to reduce his cash balance by increasing his disbursements but the money stays in the system; incomes will rise all around.
If the carriers are hoping that consumers' new interest in emergency communications will stimulate demand, the industry is falling short in at least one regard, according to the F.C.C.
It's still a strong sellers' market with inventory falling short of demand.
