A simultaneous model for the force ratio, arms imports, and foreign aid receipts is estimated for a sample of seventy-six developing nations and the period 1978-84. Regression diagnostics are applied to identify outlier nations and to assess the sensitivity of the estimated coefficients to...

Consistency in the development and presentation of the aggregate demand-aggregate supply model in introductory economics is crucial. Logical consistency requires drawing on the underlying microeconomic fundamentals, especially for distinguishing between 'movements along' and 'shifts in' the...