General Theory

D is quej calls before demand efetiva.(4) Since that D1 + D2 = D = (n), where to is afuno of offers aggregate, and as, as we saw in (2), D1 is a function of N we qualpodemos, it to write to the (n), that depends on the propensity to consume, deduces that to the (n)? to (N)= D2. (5) Consequentemente, the level of balance job depends (i) on the function daoferta aggregate, , (II) of the propensity to consume, to, (III) of the sum of the investment, D2.Esta is the essence of the General Theory of the Job. (6) To each volume of N it corresponds certaprodutividade delinquent of the hand of workmanship in the industries of good of consumption of the wage-earners, and is this that it determines the real wage. The proposal (5) is, therefore, it subjects to the condition deck N cannot exceed the value that reduces the real wage until arriving at the equality with adesutilidade delinquent of the workmanship hand This means that nor all the socompatveis variations of D with our provisory hypothesis of that the nominal wages are constant. In this manner, it is essential for the complete exposition of our theory that places divides this hypothesis.

(7) In the classic theory, according to which D = (n) for all valoresde N, the level of job is in neutral balance whenever N is inferior to its valormximo, in way that if can wait that the forces of the competition between the empresrioso raise until this maximum value. But in this point, according to classic theory, can haverum steady balance. (8) When the job increases, D1 also increases, however notanto how much D, since, when our income goes up, our consumption also goes up, emboramenos. The key of our practical problem meets in this psychological law. Of this decorreque, how much bigger it will be the job level, greater will be the difference enters the price of ofertaagregada the (z) of the corresponding production and the addition (D1) that the entrepreneurs to esperamrecuperar with the expenses of the consumers.