ABSTRACT
Keynes's main objective is to build a system capable of reflecting the movements of a money economy essentially different from a barter economy. The representation of aggregate supply is one of the least original aspects of Keynes's theory, although it should not be neglected on that account. To make their decisions concerning the volume of labor they will hire, entrepreneurs take into account their expectation regarding aggregate demand as a whole. In the classical system, competition between entrepreneurs would always lead to an expansion of employment up to the point at which the supply of output as a whole ceases to be elastic. Entrepreneurs know that any increase in output and employment triggers an increase in consumption demand whose magnitude differs from that of the increase in output. The general theory of the rate of interest is the last station in the complete presentation of Keynes's system.
