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Samuelson's Multiplier-Accelerator model is based on the economic mistake of adding together desired investment and actual savings to derive aggregate expenditure, when it is the sum of actual investment and actual savings. Its fluctuations are not a model of the business cycle, but convergence...
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John Wade formulated, in 1826 and 1833, two models of cyclical fluctuations most likely to be the first in the literature. They are fully endogenous, based on a cobweb-like mechanism affecting not agricultural production, as was customary at the time, but manufacture. Wade's earlier model relies...
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