Aggregate demand and supply
By: Roger E. A. Farmer
Contributors: National Bureau of Economic Research
Series: NBER working paper series -- working paper 13406; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13406.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, MA
Language: eng
Format: [electronic resource] /
Description: "This paper is part of a broader project that provides a microfoundation to the General Theory of J.M.  Keynes.  I call this project 'old Keynesian economics' to distinguish it from new-Keynesian economics, a theory that is based on the idea that to make sense of Keynes we must assume that prices are sticky.  I describe a multi-good model in which I interpret the definitions of aggregate demand and supply found in the General Theory through the lens of a search theory of the labor market.  I argue that Keynes' aggregate supply curve can be interpreted as the aggregate of a set of first order conditions for the optimal choice of labor and, using this interpretation, I reintroduce a diagram that was central to the textbook teaching of Keynesian economics in the immediate post-war period"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 9/21/2007.

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