ABSTRACT
On the first level Keynes's hypotheses come off with flying colors. Between 1923 and 1929 the consumption function had exactly the shape which Keynes predicted. Keynes's theorems concerning the level of employment and income at any time turn out to be a consistent body of propositions, capable of depicting a short-term feedback mechanism for the economic macro-process. Like all post-classical theories the General Theory presents a model of the economic core process isolated from any changes in the extra-systemic variables. The essential part of the theory is the strategic factors or independent variables which, together with the constants, serve as the determinants of the level of income and employment. The critical demand-supply constellation varies with the supply of labor, the rate of its employment and remuneration, the rate at which additional income will be spent.
