Jim Devine wrote,
> But when real GDP grows quickly (and unemployment falls), that represents a
> _general_ increase in aggregate demand.
Aggregate demand is a reification. An increase in the aggregate of demand
would, except by a fluke, also change the relative weights of demand for
different commodities. If today I have enough income to buy a hamburger
and a milkshake and tomorrow my income doubles, that doesn't mean I'm
going to want two milkshakes and two hamburgers. I think the mental
discipline of Say's Law would help here. At the level of abstraction where
you claim the Phillips Curve holds true, aren't aggregate demand and
aggregate supply the same thing, according to The Law? And who is Phillips
to put himself above The Law?
Tom Walker
