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A New Model for AS-AD Analysis Based on Input-Output Frame

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DOI: 10.4236/me.2011.23026    6,460 Downloads   9,752 Views   Citations
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This paper has established a new kind of AS-AD models with input-output techniques. The models take the standard input-output tables as its starting points. We analyze the change effects of government consumption, direct consumption coefficient, labor productivity, and surplus rate on the equilibrium output. In this paper, we propose that the aggregate demand function curve should be right upward, and this lead to a series of inconsistent conclusions with the traditional views. Finally, we also analyze the well-known issue of stagflation.

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X. Liu, "A New Model for AS-AD Analysis Based on Input-Output Frame," Modern Economy, Vol. 2 No. 3, 2011, pp. 203-212. doi: 10.4236/me.2011.23026.

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The authors declare no conflicts of interest.


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