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The nature of the aggregate demand and supply model(ADAS) model based on the ISLM model

Rao, Bhaskara B. (2007) The nature of the aggregate demand and supply model(ADAS) model based on the ISLM model. Cambridge Journal of Economics, 31 (3). pp. 413-422. ISSN 0309-166X

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Abstract

The aggregate demand and supply model (ADAS) is interpreted as a synthesis of the Keynesian and neoclassical models. It uses the ISLM model, without explaining its nature, to derive aggregate demand (AD). It is combined with an aggregate supply (AS) curve to explain price-inflation and output dynamics. This paper argues that neither the AD nor the AS curve is conceptually the same as its microeconomic counterpart and that ADAS is not a synthesis. In fact, ADAS implies that discretionary policy is necessary and that price changes do not perform their traditional negative feedback function.

Item Type: Journal Article
Subjects: A General Works > AI Indexes (General)
Divisions: Faculty of Business and Economics (FBE) > School of Economics
Depositing User: Ms Mereoni Camailakeba
Date Deposited: 20 Jan 2007 12:00
Last Modified: 17 Jul 2012 20:01
URI: http://repository.usp.ac.fj/id/eprint/73
UNSPECIFIED

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