tailieunhanh - money macroeconomics and keynes essays in honour of victoria chick volume 1 phần 8

nhiều khả năng nó là các giải pháp văn phòng phẩm trở nên không ổn định và, do đó, điều kiện phát triển bền vững không được hài lòng. Việc sử dụng sai các chính sách Keynes, nói cách khác, dẫn đến một sự tích tụ không bền vững của nợ công và mức thuế suất ngày càng tăng để trang trải các khoản thanh toán lãi suất. | AGGREGATE DEMAND Figure Alternative presentation of aggregate demand and supply in r Y space as one of the factors determining output and employment. In other words an increase in demand which is not offset by a compensating shift m supply Villi now cause an increase in output and employment. Presumably this was hardly the intention of the originators of the marketclearing model Barro 1984 11 and if the Cd Ys schedules do indeed represent only different facets of the same optimization problem of a representative agent things may not work out this way as the shifts in the schedules will not be independent of one However changing the domain of the exercise to r Y space does raise the issue of whether further consideration of the relationship between aggregate demand aggregate supply and the interest rate not necessarily based solely on the representative agent optimization framework might recover some of the insights regarding the impact of changes in effective demand found in the earlier literature. Figure suggests an alternative presentation of aggregate demand and supply in r Y space reverting to the traditional notation of AD for aggregate demand and AS for aggregate supply. There are three important differences between the model presented in Fig. and that in Fig. . First it is insisted that the aggregate supply function should slope downwards with respect to the real interest rate rather than upwards. This is based on arguments made previously by Smithin 1986 1997 MacKinnon and Smithin 1993 and Paschakis and Smithin 1998 that in a realistic description of a production process in which production takes time the real interest rate must enter as a key element of the costs of production. Therefore an increase in the real interest rate should reduce the demand for labour whatever its impact on This is further assumed to offset any substitution effect on labour supply giving rise to the downward-sloping function as illustrated. .