The Theory And Application Of Aggregate Supply-aggregate Demand Model Of China Based On Input-output Techniques

The Aggregate Supply-Aggregate Demand Model analysis frame of Western mainstream macroeconomics views GDP as total output variables,it can not very well explain the phenomenon of stagflation caused by the change of intermediate demand.In this paper,the AS-AD analysis model based on Input-Output framework is established,which can solve the defects of western economics and provide more abundant information for macroeconomic analysis.Firstly,the study expounds the relevant theoretical basis on the basis of reviewing the domestic and international Aggregate Supply-Aggregate Demand Model,then analyzes the differences and relations of the AS-AD model among different schools.Secondly,this paper aims to investigate the influence of macroeconomic parameters on Equilibrium state by establishing a single sector AS-AD model.The comparative static analysis shows that positive fiscal policy and active monetary policy are effective means to stimulate output and employment.and macroeconomic effect is not a simple superposition of microeconomic effects.Such as increasing surplus rate will reduces rather than increases the equilibrium output.Finally,this paper designs the AS-AD model of the two sectors to examine the economic and technological relationship between the material production sector and the non-material production sector.The results show that monetary policy and tax policy have positive effects on the output,consumption and investment of the two sectors.Increasing government consumption expenditure and increasing labor productivity can significantly increase the total output level of the material production sector.According to the results of the research on the application of the model to the Chinese economy,this paper puts forward some policy implications.