Today many textbooks use the aggregate demand/aggregate supply analysis to convey the basics of Keynesian analysis of aggregate demand in conjunction with the profit maximisation postulate as characterising the aggregate supply side. However, this construction suffers from logical inconsistency,...

Today many textbooks use the aggregate demand/aggregate supply analysis to convey the basics of Keynesian analysis of aggregate demand in conjunction with the profit maximisation postulate as characterising the aggregate supply side. However, this construction suffers from logical inconsistency,...

First, the concept of public expenditure multiplier is redefined to allow for import intensity of exports, and its value is estimated for Poland and the Czech Republic in 2008–2009. Next, on the basis of effective demand model of economic dynamics, there follows a comparative analysis of GDP...

The aggregate demand (AD)/aggregate supply (AS) framework as presented in almost all textbooks is logically inconsistent, because it seperates the demand side from the supply side. Due the the circular flow nature of the macroeconomic process, however, production/supply and income/demand cannot...