HES: Re: DISC--Textbooks and the myth of Keynes and the classics

[Horwich, George]

The aggregate demand and aggregate supply curves of the textbooks
(derived from IS-LM) are market-equilibrium curves, not demand or supply
in the micro sense. Nevertheless, they form the basis for more
conventional schedules, such as a locus of effective demand as a
function  of P or r. IS-LM, of course, contain all relevant
variables--S, I, L, M/P, etc.  See my paper with Sheng Hu, "The
Stability of Macro Models," in Essays in Contemporary Fields of
Economics, Purdue University Press, 1981. 

George Horwich