Termexplanation
referstothetotalamountofproducts,laborservicesandpurchasingpoweractuallyformedbythesocialexpendituresforinvestmentandconsumptioninacertainperiodoftime(usually1year)inacountryorregion.quantity.Itincludestwoparts:First,domesticdemand,includinginvestmentdemandandconsumerdemand.Investmentdemandiscomposedoffixedassetinvestmentdemandandcurrentassetinvestmentdemand.Consumerdemandiscomposedofresidents'individualconsumerdemandandsocialgroupconsumerdemand.Thesecondisforeigndemand,thatis,theexportofproductsandlaborservices.
Inthespiritualrealm,itreferstotheexpectationsofcertainmoralandqualitytrendsinthedevelopmentofsociety.
Measurementmethod
Therearetwomethods:
Oneistomeasurefromtheperspectiveofdemandformation,whichisbasedontheproductionindicatorsandmakeaccordingtothefactorsthataffectthetotaldemand.Adjusttogetthetotalpurchasingpowerofthesociety.Thecalculationformulais:
Socialtotaldemand=currentgrossdomesticproduct-currentsavings+currentbankcreditincome+currentfiscaldeficit+currentexport
ThesecondisCalculatingfromtheperspectiveofdemandanduseisamethodofaddingtogetherthevariousitemsthatthetotalpurchasingpowerofthesocietymayuse.Thecalculationformulais:
Totalsocialdemand=thisperiodInvestmentdemandTotalamount+totalconsumptiondemandinthisperiod+foreigncountriesinthisperiodTotaldemand
Thecomparisonbetweenthetotaldemandandthetotalsupplyabovereflectsthebalancebetweendemandrepresentedbytheabilitytopayinmoneyandthesupplyofgoods(includinglabor).
Maintainingthebalancebetweentotalsocialdemandandtotalsupplyistheneedforthesustained,rapidandhealthydevelopmentofthenationaleconomy.Thepracticeoflong-termeconomicconstructionshowsthatthetotaldemandistoolarge,theinvestmentisinflated,andtheeconomicgrowthistoofast,whichexceedsthefinancial,material,andresourcecapacityofthesociety.Allaspectsareverytight.Thissituationisdifficulttolastandwilleventuallycauseeconomicproblems.ThegreatupsanddownsinChinahavecausedhugelossestothenationaleconomy.Therefore,inordertopromotethesustained,rapidandhealthydevelopmentofthenationaleconomy,attentionmustbepaidtoregulatingthebasicbalancebetweentotalsocialdemandandtotalsupply.
Maintainingthebalancebetweentotalsocialdemandandtotalsupplyistheneedtoadjusttheindustrialstructureandimprovesocialandeconomicbenefits.Inordertopromotetheadjustmentofindustrialstructureandproductstructureandtheimprovementofproductquality,andimprovesocialandeconomicbenefits,itisalsonecessarytomaintainabalancebetweentotalsocialdemandandtotalsupply.
Maintainingabalancebetweentotalsocialdemandandtotalsupplyistheneedtoensurethesmoothprogressofeconomicsystemreforms.Todoagoodjobinthereformoftheeconomicsystem,theremustbearelativelystableandrelaxedsocialandeconomicenvironment.Excessiveaggregatedemandtendstocauseinflation,andinflationoftenleadstoconfusionintheproductionbehaviorofenterprisesandtheconsumptionandpurchasebehaviorofresidents.Becauseenterprisescannotproduceaccordingtonormalinformationandtheresidents'snappurchasebehaviorsaretriggered,thesocialandeconomicorderisdifficulttostabilize.Therefore,inordertoensurethesmoothprogressofeconomicsystemreform,thebasicbalancebetweentotalsocialdemandandtotalsupplymustalsobemaintained.