I was an editor for many years and if the article were a manuscript, I would have raised these points with you, the author:
1. In the first paragraph, I wonder if I am properly reading the last sentence: Are the words “Together, this is all of…” in the last sentence intended to imply that aggregate demand and GDP are the same thing? If there are two terms for the same thing I’m sure there is a reason but I am an outsider and wonder why.
2. In the fifth paragraph, beginning with “Monetarists…”, the “PY” of “MV=PY” is explained in this way: “P is the aggregate price of output, and Y is aggregate output, or real GDP”. The [naive?] reader will think of “P” as some sort of large dollar figure. But if he does, what is “Y” a measurement of? Another heap of dollars? Pounds of stuff? Quantities of widgets? Hedonic units? If another heap of dollars, dollars multiplied by dollars sounds weird; if not dollars but something else, it sounds crazy and impossible.
The better theory is how much of the centrifugal demand be aggregated.
The Walmart problem in PSST. That is equivalent to, how inaccurate is my histogram when doing stochastic estimation, or how many checkout counters can Walmart sustain by changing items per basket along the row. It introduces the pit boss, the entrepreneur. That person walks the line always changing items per basket, making a fractional approximation of the histogram.
I was an editor for many years and if the article were a manuscript, I would have raised these points with you, the author:
1. In the first paragraph, I wonder if I am properly reading the last sentence: Are the words “Together, this is all of…” in the last sentence intended to imply that aggregate demand and GDP are the same thing? If there are two terms for the same thing I’m sure there is a reason but I am an outsider and wonder why.
2. In the fifth paragraph, beginning with “Monetarists…”, the “PY” of “MV=PY” is explained in this way: “P is the aggregate price of output, and Y is aggregate output, or real GDP”. The [naive?] reader will think of “P” as some sort of large dollar figure. But if he does, what is “Y” a measurement of? Another heap of dollars? Pounds of stuff? Quantities of widgets? Hedonic units? If another heap of dollars, dollars multiplied by dollars sounds weird; if not dollars but something else, it sounds crazy and impossible.
The better theory is how much of the centrifugal demand be aggregated.
The Walmart problem in PSST. That is equivalent to, how inaccurate is my histogram when doing stochastic estimation, or how many checkout counters can Walmart sustain by changing items per basket along the row. It introduces the pit boss, the entrepreneur. That person walks the line always changing items per basket, making a fractional approximation of the histogram.