ABSTRACT
We must now turn to the kind of equilibrium growth that is consistent with continuous full employment in conditions of technological advance and population growth. 1 Specifically this chapter will analyse the determination of the required full-employment rate of growth of real income (and capital) (a) when labour population alone is increasing, and (b) when labour productivity is also increasing. The first of these situations presupposes a positive constant rate of growth of population accompanied by ‘neutral’ technological advance, while the second situation presumes a positive constant rate of growth of population accompanied by the ‘labour-saving’ kind of technological advance. We shall deal with both situations by taking factor prices as given so as to make the volume of employment depend on the fundamental forces of population growth, technological advance and capital accumulation.
