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Concrete type of changes on which example we will explain here the givenThe 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. it.23).,
ed. McCulloch, 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 %,
1941, it.1, Gospolitizdat, p. 26 (Rus. The lane: it D.Sochinenija. It, whether the prices of cars in the same degree will be risen? See: Works, While
Many authors of later time were confused in this question 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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