ABSTRACT
In the preceding two chapters we have treated growth in a many-product economy in very general terms. In this chapter we will construct a more limited model, but one which is designed to bring out some particular features of the real world which have been somewhat obscured in the more general model. We have already ( page 287 above) drawn attention to the fact that in the cases of raw materials which are being worked up into a finished product and of fixed capital goods which are being used over a long period of time there is a technically fixed relationship between certain inputs and outputs of the productive processes on any one day. Thus the yarn and the 100-day-old loom which go into the weaving process this morning come out as cloth and as a 101-day-old loom this evening. Cloth is not the same product as yarn and a 101-day-old loom is not the same product as a 100-day-old loom, although there are fixed technical relationships between the inputs of yarn and of 100-day-old looms and the outputs of cloth and of 101-day-old looms.
