Carrol,
AS = aggregate supply and AD = aggregate demand.
BTW, although I spent a lot of time in my repartee with
that ex-hippie Peter Dorman, :-), on why or how AD slopes
down, that is not a big deal for me, although it is if one
wants to show a cost-push inflation. The more important
side is what the AS curve looks like.
One gets an internationalsubstitution effect with fixed
or semi-fixed exchange rates. Latest
issue of Journal of International Economics has a paper by
Charles Engel claiming that PPP does not hold even in the
long run, ooooog........
Michael Perelman is right that a major appeal of the
approach is that it allows one to use a model that looks
like the standard micro supply and demand. Easy for
dumbbells to teach to dumbbells. However,
one of the problems is that they are not at all the same thing.
Barkley Rosser
-----Original Message-----
From: Carrol Cox <[EMAIL PROTECTED]>
To: [EMAIL PROTECTED] <[EMAIL PROTECTED]>
Date: Tuesday, August 29, 2000 6:01 PM
Subject: [PEN-L:949] Re: Re: Re: AS/AD -- QUERY
>I don't know whether I missed posts in which AS/AD was expanded or
>whether everyone has presumed knowledge from the beginning. But what
>does AS/AD stand for?
>
>Carrol
>
>
