ABSTRACT

From now on we shall shift the focus of our attention from the factors which, under private enterprise, regulate the supply of particular goods to those which determine the aggregate volume of output as a whole. Whereas previously we were concerned with whether individual goods would be produced in appropriate quantity, in accordance with the conditions for optimum assortment, we shall now ask, in this chapter, whether the aggregate output of all goods will be sufficient to ensure the full employment of all the available scarce resources. In the following chapter we shall analyse the factors which determine the general level of money prices ruling at any particular time.