We find then that
(BF (a-q) =I
(5)
This equation yields an implicit determination of the
quantities produced,given the capitalists’ outlay and
the price-cost relations in the various production lines.
It is thus an implicit multiplier equation.
Je now introduce the vectors production capacity q*
(q < a* ) and utilisation u ( u“ )
For each product separately, i.e. for each element of the
vector q we have the definition
u q* = gq
* =
u„q 95
and therefore
3
A
U
7)
(8)
- | ¥ = -
(u-u,)q (q- 9, )
identically for each element of the vector,i.e.for eachproduct.
We can now substitute this in (6):
/ (Ans 9 th uo) =
B-8 )(u - u_ ) g¥ = I + 3.
ae oT product,
Let us now divide both sides of (10) by „ Y* = 3 q*,
the capacity of the total economy in terms of money value.
The vector product on the left hand side of (10) now
sonsists of additive terms of the form
Au nn 2, : ! —1
3. | { eT ug, ) qQ¥ / yx
in which we can replace flax /1¥ by y¥, the share
of the respective products' capacity in the total capacity
of the economy.
ot
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vw Ll
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