Research On The Effect Of China'S Monetary Policy And Fiscal Policy Based On Multi-Sector AS-AD Model

The gross supply-demand theory of western mainstream economics is based on the theory of gross domestic product,which can not effectively analyze the intermediate demand.Based on input-output technology,this paper establishes a multi-sectoral aggregate Supply-aggregate demand model,and on this basis,establishes a five-sector AS-AD model of China's economy to analyze the impact of monetary and fiscal policies on the equilibrium state.Firstly,the theoretical basis of the aggregate supply-demand(AS-AD)model is elaborated,and the similarities and differences of AS-AD models between different viewpoints are analyzed.Based on the existing single-sector AS-AD model,a multi-sector AS-AD model is established.Secondly,the national economy is divided into five sectors: agriculture,industry,construction,transportation and service industries.The five-sector model of China's economy is constructed to explore the internal relationship of China's economic equilibrium.Using model analysis,the influence characteristics of tax rate,labor productivity,operating surplus rate,expected price,wage rate,money supply,nominal effective exchange rate on equilibrium state are analyzed.Thirdly,through the multi-factor and multi-level analysis method,this paper studies the contribution of various exogenous factors and combinations of exogenous factors to the equilibrium change of China's economy in a given period of time.According to the contribution value,this paper analyses the total effect of monetary policy and fiscal policy implemented in a given period of time in China.Finally,the multi-sectoral AS-AD model is used to analyze the theoretical effects of some specific monetary and fiscal policies on the economic equilibrium in 2015,and policy recommendations are given based on the economic characteristics in 2015.