Effectiveness of the aggregate supply and aggregate demand model for selecting balanced economic policy in the context of the informal economy

  • Malika MESSAOUDI chlef university
Keywords: Formal economy, Informal economy, Macroeconomic model, Economic policy

Abstract

The aim of this research is presentation Macro-economic model based on the foundations
 And "Keynesian" economic hypotheses. It includes both the formal economy and the informal economy, and therefore has an impact on macroeconomic policies, as part of a short-term analysis.  Based on the system of equations with fixed prices and variable quantities, we suggest a simplified representation that assesses the effect of the volume of resources related to illegal activities on the national macroeconomic variables. This is considered a major challenge, especially if the prevalence rate of official and unofficial imports is very large, then the multiplier effect leads to a reduction in official income, saving institutions and government, as well as formal investment and import.

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Published
2012-06-01
How to Cite
MESSAOUDI, M. (2012). Effectiveness of the aggregate supply and aggregate demand model for selecting balanced economic policy in the context of the informal economy. Dirassat Journal Economic Issue, 3(1), 200-214. https://doi.org/10.34118/djei.v3i1.455
Section
Articles