Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159084
Authors: 
Chirco, Alessandra
Colombo, Caterina
Year of Publication: 
1996
Series/Report no.: 
Quaderni - Working Paper DSE No. 241
Abstract: 
This paper extends the disequilibrium approach to aggregate demand and aggregate supply to situation in which the level of the fixed nominal wage is compatible with shortage of labour. We show that discontinuities arise in the AD-AS curves and that only a 'one sided,, not bilaterally stable equilibrium exists, which corresponds to the underconsumption regime. In order to show peculiarities, this extends AD-AS framework is then applied to a standard policy problem.
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

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