ACCOMMODATION VERSUS CONTROL SUGGESTED MODEL TO MACRO-ECONOMICS

Abstract

The study raised the question of knowledge generation , in attempt to answer this question an
economic model was introduced ,namely, aggregate demand and aggregate supply. The final target
equations can be solved by general rule (deterministic) of solving quadratic equations. The study
use analytical geometry and matrix algebra tools to solve the model beside testing their stability
characteristics. If we reach unique value to the price equilibrium level then income equilibrium
level the maximum potency of the economy can determined. Accordingly the rest of model
values would be solved spontaneously. The essential derived result is the relationship between
the dependent variable and independent variable can be redefined into accommodated and
accommodator one. The long run growth rate of price and income which equal to the equilibrium
combat with exogenous theory of growth which seeking stable and sustainable growth. Other
results center around how to view the debate of different economic schools from the shape of
aggregate demand and aggregate supply, moreover the theoretical and practical test of model give
great push to the suggested approach in answering the questions raised concerning the knowledge
generation. If the model succeed in exceeding the theoretical and practical tests our understanding
to the phenomena functioning will be broaden and enhanced, hence the model capability can be
enlarged to interpret phenomena in fields other than economic, typically the suggested approach “
top to bottom” may contribute positively to the process of knowledge generation in addition to the
modification of value system extraction. Finally the study suggested a protocol scenario in how to
apply the derived model by introducing different steps to the application.