Introduction The aggregate demand ...

Introduction

The aggregate demand inflect the cornerstone of much macroeconomic analysis, artificial positions both theoretical and pedagogical point in disputes at the Principles of Economics horizontal This paper contends that these question s are due to the fallacious use of microeconomic principles to teach and draw conclusions about the macroeconomy. Many economists have addressed their make anxiouss about the validity of the Aggregate Demand/Aggregate provide (AD/AS) framework. For example, Colander (1995) discusses the model's inconsistencies and questions whether the aggregate demand 1 is independent of aggregate grant The interdependence of AD and AS is also addressed in Cebula (1972; 1987) and in Fields and Hart