commissioner.org
| 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!) |
Copyright (c) 1998, Joongpil Cho