§ Mr. Austin Mitchellasked the Chancellor of the Exchequer whether his forecasts of the effect of an expansion in demand on output and employment in the long run based on the Treasury model of the economy is affected by the nature of that expansion; and if he will publish in the Official Report a statement showing how this consideration might be expected to affect the results.
§ Mr. Peter ReesThe long-run effect of an increase in demand from whatever source will depend primarily on the response of the supply side of the economy. Large-scale economic models such as the Treasury model have not so far been able to achieve an adequate representation of the supply side.