8a
We find then that
( fi - 'S / ( q - q D ) - I + C . (6)
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.
We now introduce the vectors production capacity q*
( q ^ q* ) and utilisation u ( u ^ 1 ).
For each product separately, i.e. for each element of the
vector q we have the definition
u q
u o*
* =
* =
and
a* u - ?
% ^
(7)
(8)
and therefore
( u - u Q ) q* = ( q - q Q ) ~Wt>] “j^(9)
identically for each element of the vector,i.e.for eachproduct.
We can now substitute this in (6):
(4 - Jf / fa o) * £ +■ c
( /S - 2T ) ( u - u q ) q* = I + C. (10)
He re—lu-ji^^q^-
Let us now divide both sides of (10) by ^ Y* = /3
the capacity of the total economy in terms of money value.
The vector product on the left hand side of (10) now
consists of additive terms of the form
fa 1 -■£“>!< - »„,) 45 I **
k ; 1,1
■ ,
in which we can replace by y*, the share
of the respective products’ capacity in the total capacity
of the economy. /%
l>
M A 0 * L
^ j
1 t
t£ t f &