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Concrete type of changes on which example we will explain here the given

The assertion, it will be presented by the general rise in price for end-products (or

The consumer goods further mentioned for brevity simply as "goods") At the assumption that the monetary wages remain to a constant (and, such Its falling concerning prices of goods) occurs in the image. We will assume,

What is the rise in price is caused by expansion of the demand caused by growth

The incomes received by production of the investment blessings, and exceeding that

Volume to which issue of the goods can be easily increased. We also Let's admit that businessmen expect that prices of goods, at least Long enough time, will remain on this new, higher Level. We will not do any assumptions concerning change of the prices on The capital blessings as it constitutes part our problem.

The assumption of the general rise in price for the goods at invariable wages

Means, of course, that all labour rates fall concerning the prices on

The goods. It is important to underline it as the given theorem wrongly carried to

Situations, in which only wages for the work co-operating with By cars, it is changed in relation to the prices, whereas wages in sphere Productions of most this equipment it is not mentioned. While

Many authors of later time were confused in this question, it.1,

1941,

ed. McCulloch, it.23)., Gospolitizdat, Rikardo is obvious

Supposed the general change of wages; its basic point of the short The analysis of all problem the following question is: if wages

It will be lifted on 10 %, whether the prices of cars in the same degree will be risen? See: Works, p. 26 (Rus. The lane: it D.Sochinenija. It it is necessary to recognise at once that at such general change in

Subsistence level concerning the final prices costs by production End production various methods should vary (if we start with

Assumptions of existence of uniform norm of percent) in an equal proportion. Ours

The assertion consists that it nevertheless will be in unequal degree

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