摘要
A system approach to building a theoretical model of macroeconomic system is shown in the paper. The IS-LM model, which is well-known in macroeconomics, is extended into a dynamic equilibrium model-IS-LM-AS model. The aggregate production function is afresh deduced from a set of axioms. A comparative static analysis is carried out for evidence of the stagflation and the macroeconomic policy dilemma.
A system approach to building a theoretical model of macroeconomic system is shown in the paper. The IS-LM model, which is well-known in macroeconomics, is extended into a dynamic equilibrium model-IS-LM-AS model. The aggregate production function is afresh deduced from a set of axioms. A comparative static analysis is carried out for evidence of the stagflation and the macroeconomic policy dilemma.
