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I believe it first appeared in first year text books in Baumol and Blinder and Lipsey and
Steiner. Both around 1980. (Samuelson and Nordhaus were late in the day in this one.) In
our first treatment, I referenced its first use that I knew in print. Unfortunately, I am
travelling now and cannot get my reference to its first use but I believe the reference is
in our 1981 edition of Economics.
 
I decided to go over to an AD-AS treatment while at Yale as Irving Fisher Visiting
Professor in 1979. With a lot of misgivings, I decided it was the best way to explain
stagflation by making the price level endogenous to a Keynesian model. We, of course, used
the locus of E = Y equilibrium points interpretation of the AD curve.
 
I believe, but again cannot check until I get home, that I discussed this a bit in my
contribution to Macroeconomics and the Real World, edited by Roger E. Backhouse and Andrea
Salanti
 
Richard Lipsey 
 
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