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In an individual industry its own price level depends partly on rates
Compensations of factors of the production which are a part of incremental costs
Productions, and partly from production scales. There are no bases
To change this conclusion when we pass to the industry as a whole. The general
The price level depends partly on fee rates of factors of production,
A part incremental costs of production, and partly from scales
Productions as a whole, i.e. (Accepting a condition of engineering and technology for
Given) from employment volume. However, when we pass to production in
Whole production costs in any branch partially depend from
The sizes of issue in other branches. But the most important change, with which
We should be considered, is an influence. Demand changes as on costs, and
On a volume of output. When we speak about demand as a whole, instead of about demand on
The one and only separately taken goods in the conditions of the invariable general
Demand, we should enter a number of absolutely new ideas into the analysis.
If to afford simplification, having assumed that fee rates
The various factors of production which are a part of incremental costs, all
Are changed in an identical proportion, i.e. The same proportion, as unit
Wages then it will appear that an overall price level (accepting a condition
Technicians and technologies for given) depends partly on wages unit
And partly from employment volume. Hence, effect of changes in
Quantity of money for a price level it is possible to consider as consisting of
Effects per unit of wages, on the one hand, and from effect
On employment - with other.
More particularly to imagine business, we will simplify our assumptions
Even more also we will assume that) first, all not used resources
Are homogeneous and have efficiency equal one another by production of all
The required goods also that, secondly, all entering into incremental costs
Production factors are content with the same monetary payment, while
It is available there is their not used surplus. In this case we would have
Constant yield and motionless unit of wages until then,
While there is a partial employment at least one factor. From here follows,
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