ABSTRACT

In Chapter 2 the relative share of wages and salaries in the national income was investigated and in the last two chapters the relationship between profits and I′, the sum of investment, export surplus and budget deficit was established. The combination of the results of these two inquiries will enable us to establish a relation between the national income and I′, Thus, in the special case where foreign trade and the government budget are balanced, the national income will be related to investment I.