Questions tagged [aggregate-demand]
The aggregate-demand tag has no usage guidance.
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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 ...
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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 ...
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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.
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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.
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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 ...
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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?
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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 ...
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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 ...
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How to derive the FIRST equation from the SECOND one?
First equation Dynamic Aggregate Demand
How the derive from second equation the first one?
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Price rigidity and demand-constrained economies
In this note, http://web.mit.edu/krugman/www/MINIMAC.html, Krugman develops a simple model to introduce the idea that whenever an economy experiences price rigidity then this economy is demand-...
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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 ...
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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://...
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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 ...
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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 ...
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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 ...
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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}{\...
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