Questions tagged [aggregate-demand]
The aggregate-demand tag has no usage guidance.
20
questions
0
votes
0
answers
60
views
0
votes
0
answers
7
views
two real gdp at the same price level in ad as model
in a macro book of arnold i see an agg demand-supply model where it seems above the equilibrium price level there are two real gdp for the same price level. the book then goes on to explain that there ...
- 1
0
votes
0
answers
9
views
does the income-output-expenditure method of getting real gdp hold in ad as model
in the ad as model, it seems there's two different real gdp for a given price level when in disequilibrium. does this mean the real gdp counted from the demand side is not equal to the real gdp ...
- 1
0
votes
0
answers
7
views
difference between quantity of real gdp demanded and quantity of real gdp supplied and real gdp
I can't seem to understand why the agg demand curve and agg supply curve both have real gdp at the horizontal axis and price level at the vertical axis. How can the relation between two same ...
- 1
0
votes
0
answers
20
views
What would be the theoretical outcome of expansionary fiscal policy... on the business cycle?
Hello all,
So, I came across this question on my economics final. It immediately struck me as odd. It's asking what effect expansionary fiscal policy would have in the Aggregate Demand - Aggregate ...
0
votes
0
answers
52
views
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 ...
- 31
2
votes
1
answer
24
views
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 ...
- 23
0
votes
0
answers
15
views
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.
- 203
0
votes
0
answers
24
views
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.
- 1
1
vote
0
answers
35
views
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 ...
- 11
0
votes
1
answer
308
views
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 ...
- 225
6
votes
2
answers
743
views
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 ...
- 117
0
votes
1
answer
31
views
How to derive the FIRST equation from the SECOND one?
First equation Dynamic Aggregate Demand
How the derive from second equation the first one?
2
votes
1
answer
36
views
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-...
- 457
0
votes
1
answer
133
views
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 ...
- 117
2
votes
1
answer
115
views
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://...
- 299
2
votes
1
answer
64
views
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 ...
- 178
1
vote
1
answer
97
views
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 ...
- 13
0
votes
1
answer
38
views
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 ...
- 131
2
votes
1
answer
219
views
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}{\...
- 5,061