publication . Article . 2004

Implications Of Aggregate Demand Elasticity For The Phillips Curve

Ben L. Kyer; Gary E. Maggs;
Open Access
  • Published: 01 Jan 2004 Journal: New York Economic Review, volume 35, issue 1, pages 69-76
Abstract
While the general relationship between the aggregate supply curve and the Phillips curve is recognized, the importance of aggregate demand and, in particular, aggregate demand elasticity, for the inflation-unemployment relationship has been untreated. We believe, however, that the elasticity of aggregate demand with respect to the general price level does have some significance for the short-run Phillips curve since, on a general level, the economy's equilibrium price level, inflation rate, real gross domestic product, and unemployment rate are determined jointly by aggregate supply and aggregate demand. The primary purpose of this paper then is to demonstrate w...

Apergis, Nicholas and Elestheriou, Sophia. “Measuring Price Elasticity of Aggregate Demand in Greece: 1961 - 1995”, Public Finance Review, September 2000, pp. 452-467.

Gambs, Carl. M. “A Note on Macroeconomic Textbooks: The Use of the Aggregate Demand Curve”, Journal of Economic Literature, September 1974, pp. 896 - 898. [OpenAIRE]

Gordon, Robert J. Macroeconomics, Ninth Edition, Reading, MA: Addison-Wesley, 2003.

Green, R. Jeffrey; Hickman, Bert G; Howrey, E. Phillip; Hymans, Saul H.; and Donihue, Michael R. “The IS-LM Cores of Three Macroeconomic Models”, in Comparative Performance of US Econometric Models, Lawrence R. Klein, editor, 1991.

Kyer, Ben L. and Maggs, Gary E. “A Macroeconomic Approach to Teaching Supply-Side Economics”, Journal of Economic Education, Winter 1994, pp. 44 - 48.

Kyer, Ben L. and Maggs, Gary E. “Monetary Policy Rules, Supply Shocks, and the Price Level Elasticity of Aggregate Demand”, Journal of Economic Education, Fall 1995, pp. 364 - 372.

Kyer, Ben L. and Maggs, Gary E. “Supply-Side Economics and the Price Level Elasticity of Aggregate Demand”, Public Finance Quarterly, January 1996, pp. 88-98.

Kyer, Ben L. and Maggs, Gary E. “Price Level Elasticity of Aggregate Demand in the United States: Quarterly Estimates, 1955 - 1991”, International Review of Economics and Business, June 1997, pp. 407 - 417.

Kyer, Ben L. and Maggs, Gary E. “Aggregate Demand Elasticity in Canada”, unpublished manuscript, 1999.

Mankiw, N. Gregory. Macroeconomics, Fifth Edition, New York, NY: Worth Publishers, 2003.

Phillips, A.W. “The Relation Between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861 - 1957”, Economica, November 1958, pp. 283 - 299.

Powered by OpenAIRE Research Graph
Any information missing or wrong?Report an Issue