ABSTRACT
In the two preceding chapters, the problem of inflation has been post poned. Both the maintenance and the achieving of full employment have been discussed on the assumption that prices and wage rates were stable. But in practice, an increase in aggregate demand aimed at in creasing employment may actually spend itself in price and wage in creases and, even if full employment were reached, an aggregate demand sufficient to maintain full employment at stable prices and wage rates might actually lead to price and wage increases and unemployment. Measures aimed at achieving or maintaining full em ployment must, therefore, take account of these possibilities.
