Controversial issues in constructing the aggregate demand function in the model of AD-AS
The article considers the principles of constructing the aggregate demand function, which are justified in the AD-AS model. The author of research highlights incorrect assumptions in determining the function of aggregate demand, which are presented in modern textbooks, and proves the position that aggregate demand cannot be formed in the process of gradual or steady movement of the market economy to the state of equilibrium. The author proves that the representation of the form of motion to the equilibrium state is incorrect to two bases. First, this form of movement of the market economy contradicts the mechanisms of market competition. Secondly, this form of movement of the market economy contradicts the definitions of the equilibrium price theory. The position of the author of this article is that the formation of aggregate demand in the AD-AS model should be considered in the process of moving the market economy to the state of “equilibrium” from the position of the “web” theorem. But at this statement of a problem in constructions of model problems which are shown by the author are found out. These problems do not exist in the Marx model, which adopts a fundamentally different approach to explaining demand and supply formation.