Aggregate Demand & aggregate Supply: Formulating Equations and their Policy Implications

Eltahir, Yassin (2014) Aggregate Demand & aggregate Supply: Formulating Equations and their Policy Implications. The Journal of American Science, 10 (12). pp. 1-6. ISSN 2375-7264

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Abstract

Macroeconomic indicators like inflation, unemployment as well as payment balance influence by national income level and growth. To manage macro indicators ought to compromise national income growth. Hence factorization of income helps in assessing these indicators beside achieving their target levels. This study approaching national income through aggregate demand and supply, specifically the attempt to formulate equations to these concept facilitates the analysis as well as management of national income. Accordingly by solving the final equations a unique equilibrium values to price level and income will be found out. From these values exchange rate and interest rate equilibrium values were reached, consequently, sub markets equilibrium quantities will be obtained. The approach of this study concentrates on economy’s potential which frame the limits within which the policy makers design their plans. Finally the choice between different policies will belong to the geometric version of the model, which also rationalizes the adoption of specific school of thought.

Item Type: Article
Subjects: Business Administration
Divisions: College of Administrative and Financial Sciences - Abha > Administrative Sciences
Depositing User: yassin Fadlalla
Date Deposited: 16 Nov 2015 09:10
Last Modified: 16 Nov 2015 09:10
URI: http://eprints.kku.edu.sa/id/eprint/121

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