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(DP 1994-01) Macromodels and Walras' Law
UPSE Discussion Papers
View Archive Info| Field | Value | |
| Title |
(DP 1994-01) Macromodels and Walras' Law
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| Creator |
Encarnacion, Jr., Jose
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| Description |
Using a short-period macromodel with familiar components, this paper reformulates the aggregate demand (AD) function so that in conjunction with an aggregate supply (AS) function, one has an AS/AD framework with the following features: unlike the textbook treatment based on IS-LM where the I = S equilibrium condition is satisfied at every point of the AD curve, I = S only where AS = AD; involuntary unemployment is the typical case; and the money wage is not exogenously given. Walras' Law does not hold in the model. It may hold in other short-period models but only because of special assumptions about AD or AS.
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| Publisher |
UPSE Discussion Papers
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| Contributor |
—
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| Date |
2010-08-28
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/188
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| Source |
UPSE Discussion Papers; 1994
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| Language |
eng
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| Relation |
http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/188/260
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