IDEAS home Printed from https://ideas.repec.org/a/sae/reorpe/v42y2010i3p308-314.html
   My bibliography  Save this article

Criticisms of Aggregate Demand and Aggregate Supply and Mankiw’s Presentation

Author

Listed:
  • Fred Moseley

    (Mount Holyoke College, South Hadley, MA, fmoseley@mtholyoke.edu)

Abstract

This paper argues that the standard AD-AS framework as presented in intermediate macroeconomic textbooks is (1) internally logically inconsistent and (2) empirically unrealistic. The logical inconsistency is because the AD and AS curves represent two mutually exclusive theories of the relation between output and the price level in the same economy. The empirical unreality is that it assumes that, when there is excess supply, prices will fall, and furthermore, falling prices will return the economy to full employment. Neither of these assumptions is valid for our economy today. The paper focuses specifically on Mankiw’s presentation of AD-AS in his best-selling textbook. JEL classification: A22, E10

Suggested Citation

  • Fred Moseley, 2010. "Criticisms of Aggregate Demand and Aggregate Supply and Mankiw’s Presentation," Review of Radical Political Economics, Union for Radical Political Economics, vol. 42(3), pages 308-314, September.
    • Handle: RePEc:sae:reorpe:v:42:y:2010:i:3:p:308-314
    as

    Download full text from publisher

    File URL: http://rrp.sagepub.com/content/42/3/308.abstract
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Grieve, Roy H, 2014. "'Right Back Where We Started From': From 'The Classics' To Keynes, And Back Again," SIRE Discussion Papers 2014-001, Scottish Institute for Research in Economics (SIRE).

    More about this item

    Keywords

    aggregate demand; aggregate supply; logically inconsistent; empirically unrealistic;
    All these keywords.

    JEL classification:

    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:reorpe:v:42:y:2010:i:3:p:308-314. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.urpe.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.