The demand and supply shocks in the U.S. and China are analyzed using the Blanchard and Quah (BQ) and ordinary least squares (OLS) methods. For the U.S. data, the aggregate supply (AS) curve has a positive slope, whereas the aggregate demand (AD) curve has a negative slope. However, the two...

The demand and supply shocks in the U.S. and China are analyzed using the Blanchard and Quah (BQ) and ordinary least squares (OLS) methods. For the U.S. data, the aggregate supply (AS) curve has a positive slope, whereas the aggregate demand (AD) curve has a negative slope. However, the two...