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International Journal of
Commerce and Economics
ARCHIVES
VOL. 8, ISSUE 2 (2026)
Artificial intelligence (AI) and macroeconomics: Theoretical reconstruction, mechanism analysis and policy framework
Authors
Dr. Lung-Tan Lu
Abstract
The Fourth Industrial Revolution uses artificial intelligence as its fundamental core technology which transforms how the macroeconomy functions through its operational system. The paper explains how AI transforms household behavior and business operations and government operations and foreign sector activities through the traditional four-sector macroeconomic analysis. The paper argues that AI functions as an independent factor which should join the classical four factors of production system. The research develops an extended production function which integrates AI capital as a vital element. The research demonstrates that AI enables macroeconomics to shift from human-only decision systems toward human-machine collaborative decision systems through its impact on total factor productivity and its ability to modify how income from factors is distributed and its effects on the structure of aggregate supply and demand and its role in monetary and fiscal policy transmission systems. The research paper explores multiple critical elements which include the AI era defects of GDP accounting system and the labor market structural transformations and the financial system stability and the worldwide economic system changes. The research combines SSCI literature evidence with policy optimization methods that create a balanced system between operational efficiency and social fairness and economic stability. The research provides academic evidence which supports the development of new economic theories and their practical application through policy implementation.
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Pages:41-51
How to cite this article:
Dr. Lung-Tan Lu "Artificial intelligence (AI) and macroeconomics: Theoretical reconstruction, mechanism analysis and policy framework". International Journal of Commerce and Economics, Vol 8, Issue 2, 2026, Pages 41-51
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