ABSTRACT
This chapter aims at neoclassical microeconomic theory is actually affected by the Cambridge critique. The subsequent formation of profits and their distributive parts is a microeconomic process, in the sense that it does not add to the macroeconomic income defined beforehand. The fact is that the scope of this critique may look overstated with respect to neoclassical economics that is mainly concerned with microeconomic behaviours and propounds micro-founded models. General equilibrium may be considered a macroeconomic concept, since it is supposed to account for the way the economy as a whole works. The chapter rekindles interest in Keyness monetary theory of production, which provides the macro foundations needed for the interplay of supply and demand to p. a. its part in price determination and, more generally, in microeconomic phenomena. In Keyness view, the actual economy is not the real exchange economy described by neoclassical school it is a monetary economy of production that he also labelled a money-wage or entrepreneur economy.
