Macroeconomics

Monetary policy

Materials science

Interpretation (philosophy)

Aggregate (composite)

Economics

Computer science

Keynesian economics

Mathematics

Aggregate demand

Geometry

Composite material

Point (geometry)

Programming language

Positive economics

In the previous issue of this journal, we provided a survey of null AS-AD null models used in intermediate macroeconomic textbooks. That exercise was seen as preliminary to a careful consideration of criticisms made of the null AS-AD null model that suggest it should cease to be used as a device for teaching intermediate macroeconomics. In this paper, we undertake this investigation and examine a range of problems that have been identified with the null AS-AD null model. We argue that that while a number of these criticisms are valid, they may be overcome in ways that leave the model largely intact as a device for teaching the neoclassical explanation of price-output determination. One of these ways involves a new interpretation the model. We do, however, point out two more fundamental criticisms of the null AS-AD null model that have null not null featured in the literature, and argue that acceptance of these criticisms would require replacement of the neoclassical paradigm itself. Until a decision to do this is taken by the profession, we argue that a revised null AS-AD null model has a continuing role to play in teaching intermediate macroeconomics. null null Keywords : Aggregate demand, aggregate supply, teaching. null null JEL classifications :  A20, A22, E37.

Re-Evaluating the AS-AD Model as a Device for Teaching Intermediate Macroeconomics