ABSTRACT
The chapter explores the basically different and, alas, much more difficult problems connected with the notion of equilibrium in a many-product economy with man-made investments of production, which is growing through time. The schema could readily be extended to cover more than one type of labour and many more intermediate products and consumption goods. The chapter discusses the flexible labour market so that the wage rate ruling at 8 a.m. on day 0 is reduced until entrepreneurs expand their operations so that all labour is employed. The production of necessities is assumed to be labour-intensive so that its expansion would have enriched the workers rather than the owners, and the workers do demand necessities rather than luxuries. The research unit has now to find a set of output flows for and a set of price movements for which satisfy all the requirements of the competitive economic system moving in an equilibrium manner.
