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With respect to the AD curve, there are two versions commonly used in today's first-year
textbooks. There is, first, one derived from the income version of the EOE identity and,
secondly, there is the more common version derived from the Keynesian cross. The income-
EOE form is an improper hybrid which assumes total money is augmented by a fixed income
velocity. Irving Fisher is turning in his grave, and the Keynesian form is not a ceteris
paribus demand curve at all, but rather a locus of points, P and multiplied y, for which
the goods market is in equilibrium. Colander has a nice article on some of the
contradictions and problems associated with the "beast," but unfortunately he attempts to
salvage the thing with complex convolutions which are impractical at best.
 
Chas Anderson 
 
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