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

Xinjian Liu

doi:10.4236/me.2011.23026

Home > Journals > Business & Economics > ME

Modern Economy > Vol.2 No.3, July 2011

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

Xinjian Liu

DOI: 10.4236/me.2011.23026 PDF HTML 6,718 Downloads 10,117 Views Citations

Abstract

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.

Keywords

AS-AD Model, Input-Output, Aggregate Supply, Aggregate Demand

Share and Cite:

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.

Conflicts of Interest

The authors declare no conflicts of interest.

References

[1]	B. Los, “Endogenous Growth and Structured Change in a Dynamic Input-output Model,” Economic Systems Research, Vol. 13, No. 1, 2001, pp. 3-34. doi:10.1080/09535310120026229
[2]	W. W. Leontief, “Quantitative Input and Output Relations in the Economic System of the United States,” Review of Economics and Statistics, Vol. 18, No. 3, 1936, pp. 105-125. doi:10.2307/1927837
[3]	J. M. Keynes, “The General Theory of Employment, Interest and Money,” Macmillan Cambridge University Press, London, 1936.
[4]	O. Blanchard, “Macroeconomics,” Tsinghua University Press, Beijing, 2001, pp. 126-128.
[5]	P. A. Samuelson and W. D. Nordhaus, “Economics,” China Development Press, Beijing, 1992, pp. 11-15
[6]	D. W. Jorgenson, “Productivity, Volume 1: Postwar U.S. Economic Growth,” MIT Press, Cambridge, 1995, pp. 2- 7.