ABSTRACT
This book showed that macroeconomic analysis divides into two broad theoretical approaches, the demand-constrained and price-constrained frameworks. A price-determined economy is either in a unique full employment general equilibrium, or prevented from achieving that general equilibrium by private or public price “distortions”. An economy is demand-determined when its level of output is limited by one or all of the components of aggregate demand: consumption, private investment, government expenditure, or exports.
