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Time to ditch ADAS?

Grieve, R.H. (2010) Time to ditch ADAS? Review of Radical Political Economics, 42. pp. 315-320. ISSN 0486-6134

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Abstract

Complementing previous, often ignored criticism of the AD-AS model - to the effect that this widely-used construction is inherently inconsistent - this note argues that a (rare) defence of the model by Peter Kennedy fails to convince and that the model does indeed, as alleged, give rise to confusing and misleading expositions of the working of the macroeconomy.