Questions tagged [aggregate-demand]

The tag has no usage guidance.

Filter by
Sorted by
Tagged with
0 votes
0 answers

Non Continuous Walrasian Demand Function

I have a silly question. I’m trying to solve some exercises that have to do with the walrasian demand function $x(p,w)$ and excess demand function $z$. More especifically, I’m asked to show that there ...
Martin 's user avatar
2 votes
1 answer

Why does a positive output gap shift the short run AS curve instead the demand curve?

I'm reading through Mishkin "The Economics of Money, Banking, and Financial Markets". In chapter 23 (of the global 13th edition), they introduce the AS/AD framework. What confuses me is the ...
swissy's user avatar
  • 23
0 votes
0 answers

CES price index with heterogeneous productivity

When there is a distribution of productivity, so that different firms have different sale shares, the aggregate CES price index has shares as weights? References to papers are welcomed.
Luca Gi's user avatar
  • 193
0 votes
0 answers

The proofs in W.M.Gorman "Community preference fields''

I am reading W.M.Gorman "Community preference fields''. However, many of the proofs are omitted or only in outlines. Do you know some other helpful references? Thank you.
Saito's user avatar
  • 1
1 vote
0 answers

Help with Macroeconomics Question: IS-LM Model [closed]

I know this is supposed to be a simple question, but I need to check the answers for it and as it was a past exam question I do not have the results for it.If anyone can help out, that would be ...
Antony Mark's user avatar
0 votes
0 answers

Effect of a rise in AS and a larger rise in AD on price level and output

In the new classical model of AD and AS, if there is a rightward shift in both AD and AS, but the increase in AD is larger, will the growth in the price level be greater than the growth in output? ...
Wesley1293's user avatar
0 votes
1 answer

Why is the horizontal axis 'Real GDP' in Aggregate Demand Curve

In the aggregate demand curve, the horizontal axis is labelled 'Real GDP'. Why doesn't it represent 'Quantity Demanded'? After all the curve is the aggregate demand curve, so we have to show some ...
MangoPizza's user avatar
6 votes
2 answers

Does the Sonnenschein-Mantel-Debreu theorem fundamentally undermine Mises' Economic Calculation Argument?

So recently I have been thinking a lot about this fundamental question: Does the Sonnenschein-Mantel-Debreu theorem disprove the "Law of Demand"? Basically, the Sonnenschein-Mantel-Debreu ...
Robotic_Cow's user avatar
0 votes
1 answer

How to derive the FIRST equation from the SECOND one?

First equation Dynamic Aggregate Demand How the derive from second equation the first one?
Ibrahimsahinkaya's user avatar
2 votes
1 answer

Price rigidity and demand-constrained economies

In this note,, Krugman develops a simple model to introduce the idea that whenever an economy experiences price rigidity then this economy is demand-...
BAL's user avatar
  • 457
0 votes
1 answer

Aggregate demand and Real GDP

I understand that aggregate demand is the demand for all goods and services in an economy. However, I later found out that aggregate demand and real GDP are calculated using the same formula, so does ...
MathGeek's user avatar
  • 117
2 votes
1 answer

GDP doesn't add up in FED data - why?

To visualise the formula: $$Y=C+I+G+NX$$ I downloaded the FED data and plotted it, only to discover the two curves progressively diverge (see chart below). What am I missing? thank you! $Y$ = https://...
elemolotiv's user avatar
2 votes
1 answer

Concept of Utility in demand systems

I have seen that researchers use different utility function in demand systems estimation such as Stone Geary. What is the role of these utility functions? What are utility function other than stone ...
desi arthshastri's user avatar
1 vote
1 answer

Trouble at differentiating a consumption function

everyone. This is kind of a basic question, but I have a weak background on calculus and I already tried to figure this out by myself for a few hours without success. So, I am finally appealing on you ...
PedPg's user avatar
  • 13
0 votes
1 answer

New Keynesian IS curve: question about time dependence

A simple version of the new-Keynesian IS cuve is given as follows: $$ \ln Y_{t} =\ln Y_{t+1} -\frac{1}{\theta} r_t. $$ Here $r_t$ is the real interest rate and $1/\theta$ is the cross elasticity of ...
Ma Joad's user avatar
  • 131
2 votes
1 answer

The new Keynesian IS curve: What determines output?

The New Keynesian IS curve can be described by the following (log-linearisation around the steady-state):$$y_t=E_t(y_{t+1})- \frac{1}{\theta}(i_t - E_t\pi_{t+1}-\rho)$$ where $\displaystyle\frac{1}{\...
An old man in the sea.'s user avatar