Video: Factors Affecting Demand

In this lesson, Nick Palazzolo, CPA, dives into the intricacies of what drives demand in the economy, explaining how various factors interplay to impact supply and demand. He emphasizes the importance of governmental policies, particularly contractionary and expansionary policies, and how they can either temper or boost economic conditions. In a lively and engaging discussion, Nick illustrates the business cycle’s ups and downs and links these moments to appropriate fiscal responses. He also examines the effects of policy tools such as manipulation of the money supply, interest rates, and taxation on wealth, asset prices, and inflation. Furthermore, Nick explains supply-side influences including supply shocks, changes in the number of suppliers, and input prices while tying these concepts back to real-world scenarios. Tune in as Nick makes it a priority to provide a comprehensive understanding of these fundamental economic principles in a dynamic and practical fashion.