The Macroeconomic Framework
This chapter focuses on the macroeconomic framework, which guides the analyses of the book. We shall begin with an overview that describes how the major components of the framework relate to one another. The constraints (or “conservation laws”) that are imposed by the pool of fluid capital will then be discussed, followed by discussions of the determination of asset values and aggregate demand and aggregate supply. The chapter concludes with a description of the conditions, which define macroeconomic equilibrium.
KeywordsAggregate Demand Current Production Current Prex Aggregate Supply Real Stock
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