Aggregate demand, aggregate supply, a Trojan horse and a Cheshire cat
Article Abstract:
Rudiger Dornbusch's and Stanley Fischer's 'Macroeconomics' uses an aggregate demand/aggregate supply model which results in inconsistent and confusing measurements of the equilibrium levels of price and output. This is due to the combination of incompatible concepts typical in macroeconomic textbooks. The authors also fail to support Keynesian concepts in their use of the model and instead, present unjustified predictions of ready adjustment to natural rate.
Publication Name: Journal of Economic Studies
Subject: Economics
ISSN: 0144-3585
Year: 1996
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Competing schools of thought in macroeconomics - an ever-emerging consensus?
Article Abstract:
Competing schools of thought in macroeconomics may present divergent perspectives but they also share similar views on certain issues. For instance, all schools contend that investment is highly responsible for the creation of business cycles. Partial consensus has also emerged between classical and Keynesian schools with regard to the self-adjusting nature of the macro economy and the importance of the stabilization policy.
Publication Name: Journal of Economic Studies
Subject: Economics
ISSN: 0144-3585
Year: 1996
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