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AD curve aggregate demand price aggregate supply Arrow and Debreu Arrow-Debreu model AS/AD framework AS/AD schema based on IS-LM bond markets clear classical model condition is satisfied consumption curve corresponding curves in Fig demand function distinct curves Dornbusch Economics Eliminating M/p employed workers employment endogenously determined equate equilibrium condition Equilibrium Money Wage equilibrium values excess supply exogenously fixed exogenously given familiar components Firms produce following features functions f higher value hold identically equal Interest Rates intersection involuntary unemployment Keynes Keynesian labor market clearing labor supply function Macmillan Macroeconomics macromodel with familiar model is identically money and bond output overdeterminacy overdeterminate paper reformulates Patinkin Plotting potential income pressure from employed real wage reformulates the aggregate Returning to Model short-period general equilibrium short-period macromodel short-period models special assumptions suffices to determine supply of labor textbook treatment based Theory three models unlike the textbook variables Walras Worker-owned single-worker workers to raise