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Shift in propensity to consumption. To me it is thought therefore that real demand
On 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
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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