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Shift in propensity to consumption. To me it is thought therefore that real demandOn work will remain almost constant during all industrial Cycle. I repeat that prof. Pigu at the same time has missed in the analysis Really unstable factor, namely fluctuations in sizes of investments, Which underlie such phenomenon, as employment fluctuations more often.
I have subjected to so vast criticism "the unemployment Theory" prof. Pigu not
Because this book seems to me more vulnerable for criticism, than work
Other economists of classical school, that is why that the book of prof. Pigu
Represents unique attempt known to me precisely to state The classical theory of unemployment. Therefore my debt was to put forward Objections against this theory with reference to most solid of works, it The representing.
CHAPTER 20
Function of employment (121)
In it. 3 (with. 20) we have defined function of aggregate supply Z = ((N),
Connecting employment N and aggregate exercise price of the offer of the corresponding
Production. Employment function only that also differs from function of the cumulative
Offers that actually it is its inverse function and is expressed in Wages units. Appointment of function of employment - to connect size Measured in units of wages of effective demand for production Certain firm, branch or the industry as a whole with size Employment at which the ask price of this production becomes equal To size of effective demand for it. Thus, if measured in Wages units effective demand for production of any firm Or branches Dwr are caused in this firm or branch by employment Nr, function To employment it is expressed by the formula
Nr = Fr (Dwr).
Or, more generally, if we have the right to assume that Dwr is Unequivocal function of all effective demand Dw, employment function It is expressed through
Nr = Fr (Dw).
It means that Nr the person will be taken in branch r, when the effective Demand will be equal Dw.
In this chapter we will find out some properties of function of employment. But besides
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