Some years ago Sheng Hu and I tried to put some teeth into the AD-AS diagram by working with the concept of "effective" demand, derived from our interpretation of the underlying IS-LM functions. We called it "The Stability of Macro Models." It appeared in "Essays in Contemporary Fields of Economics", co-edited by myself and Jim Quirk (Purdue University Press, 1981). It built on an earlier paper by Pat Hendershott and me, "IS-LM as a Dynamic Framework", which appeared in a volume I co-edited with Paul Samuelson, "Trade, Stability, and Macroeconomics" (Academic Press, 1974.) And even farther back, my book "Money, Capital, and Prices" (R.D. Irwin, 1964) laid the groundwork for the dynamic adjustment used in the later papers. It goes without saying that few if any texts handle the process correctly. George Horwich