ABSTRACT
This chapter describers the concept of a definite time-structure of investment is even more important for the understanding of the dynamic processes of the accumulation and consumption of capital than for the mere description of the conditions of a stationary equilibrium. It discusses the horizontal plane of a three-dimensional system of co-ordinates and measures the values attaching to these quantities along the third V-axis. The chapter assumes that the available quantity of "labour", the rate of interest and the value of either a unit of "labour" or a unit of consumers' goods is given. It also assumes that one of the many alternatively possible investment functions has been decided upon and that in consequence the quantity of consumers' goods produced is also determined. The problem, then, is what quantity of consumers' goods is to be attributed to individual units of "labour". The answer is contained in the diagrammatic description of equilibrium.
