ABSTRACT
The literature on the relationship between Keynesian and classical economics lays almost exclusive emphasis on monetary phenomena; relatively little attention is paid to technological relationships,2 although an understanding of the precise nature of the production function assumed in each system is clearly of relevance. In particular, the assumption of variable proportions between inputs is crucial to Keynes’ approach, and it is usually taken to be an assumption of classical writers too. At times, it is recognised that the classics denied the possibility of obtaining additional output by increasing the quantity of labour used with other (given) inputs, but rarely is this seen as important.3
