The supply curve
Source Michael Meeropol
Date 19/06/13/11:05

It's even WORSE at the Macro level where the so-called aggregate supply
curve suggests that changes in the ABSOLUTE price level have a predictable
impact on TOTAL production ---

Using AS-AD even somewhat decent economists can argue that the macro
economy has a self-correcting mechanism (it's really the old Pigou effect
as further developed by Patinkin) and that the Keynesian high unemployment
"rut" that captures the economy from time to time is a "special case" of
the more general behavior of the macro-economy (the exact opposite of
Keynes' argument!)

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