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To be accompanied by employment increase. But the question essence consists just inThe volume, whether remains the cumulative effective demand measured in money, the same
Most at reduction of monetary wages or whether at least will be Cumulative effective demand to decrease in a smaller proportion, than The monetary wages are reduced (i.e. Whether there will be it slightly more At its measurement in terms of wages). But as the classical
Theories it is not granted the rights to extend by analogy the conclusions concerning to
To individual industries, on the industry as a whole it appears absolutely
Not in a condition to answer a question on what will be influence on employment
Reductions of monetary wages as it does not possess a method
The analysis which would be suitable for this purpose. In the book of prof. Pigu "the Theory
Unemployments "everything is extracted, in my opinion, from the classical theory that only
It was possible to extract from it. And as a result this book serves as a vivid example
That the classical theory has nothing to offer for the problem decision, than
The valid occupation level as a whole (118) is defined.
II
Let's try to apply in that case our own method of the analysis to
To the decision of this problem. It breaks up on two parts. Whether (1) conducts reduction
Monetary wages with other things being equal directly to To employment increase, understanding as "other equal conditions" that
Propensity to consumption, the schedule of a marginal efficiency of the capital and norm
Percent remain for company as a whole same, as before? And (2) Whether renders reduction of monetary wages inevitable or probable Influence on an occupation level an indirect route - by means of the Inevitable or probable effect on these three named factors?
We have already answered the first question negatively in previous heads. We
Have shown that is unique, with what the employment volume corresponds, is with volume
The effective demand measured in units of wages, also that Effective demand, representing the sum of expected consumption and Expected investments, it can not be changed, if propensity to consumption,
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