A New Way to Learn Economics

Re:A New Way to Learn Economics by yorwba on Tuesday September 12, 2017 @10:39AM (#15227614)

I don't think you can get an exact aggregate supply/demand model if you are aggregating over non-interchangeable products. To combine the models for different products, you'd need vector-valued price, supply, and demand. That could lead to strange interactions, which wouldn't be captured by lower-dimensional models.

Disclaimer: I've never even taken Econ 101, so I might completely misunderstand something. If that's the case, please downvote and tell me where I'm wrong.

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Re:A New Way to Learn Economics by js8 on Tuesday September 12, 2017 @10:58AM (#15227788)

This is kinda the conclusion that Steve Keen's Debunking Economics arrives at too, although amazingly enough, through a different path (avoiding breaking the monotonicity assumptions on supply and demand curves). Basically, any aggregate supply/demand model has a single consumer and a single product. Which makes them pretty much useless, and they just need to go.

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