Positive Slope Model of Aggregate Demand

A Dynamic Model of Aggregate Demand and Aggregate Supply

A Model of Aggregate Demand and Unemployment

We present a static model of aggregate demand and unemployment. The economy has a nonproduced good, a produced good, and labor. Product and labor markets have matching frictions. A general equilibrium is a set of prices, market tightnesses, and quantities such that buyers and sellers optimize given prices and tightnesses, and actual tightnesses equal posted tightnesses. In each frictional marke...

Criticisms of Aggregate Demand and Aggregate Supply :

The Aggregate Demand – Aggregate Supply framework has dominated intermediate macroeconomics textbooks since the 1980s. However, there have been 2007). In spite of these criticisms, the ADAS framework had continued to dominate the textbooks, with little or no response to these criticisms. This paper reviews the main criticisms of the ADAS framework, and then focuses on Gregory Mankiw's presentat...

Aggregate Demand and Expenditure

Consumption Expenditure Of the four components of aggregate demand, consumption expenditure C is the largest contributing to between 60% and 70% of total expenditure. For this reason, we often start our analysis with this particular component. This category of expenditure includes private spending on durable goods (automobiles, electronic goods, appliances, ... ), non-durable goods (food, cloth...

Aggregate demand and supply

This paper is part of a broader project that provides a microfoundation to the General Theory of J. M. Keynes. I call this project “old Keynesian economics” to distinguish it from new-Keynesian economics, a theory that is based on the idea that to make sense of Keynes we must assume that prices are sticky. I describe a multi-good model in which I interpret the definitions of aggregate demand an...