## Full text: From Stagnation in the 30s to Slow Growth in the 70s.

```8
We consider a closed private economy, a two class model,
in which workers do not save. Let us define a vector q
of the quantities of the various commodities ( only final
products are considered, the economy
integrated, so that costs consist only of wages and salaries)
We write then for the gross national income Y and for the
wage and salary bill W the following equations:
Y = /3 q,
(D
(2)
+ w 1 .
o
cost per unit are vectors. The income Y and wage bill W
are given by the inner product/°f the vectors and are
therefore scalar. 1 is the unit vector and w Q are the
fixed wage and salary cost.
At the break even point q Q income equals wage and salary
cost, we have therefore
(3)
From this follows that
(4)
o
f h y \ ) Hd? tjtf ~ Wol
The difference between equations (1) and (2) taking account
of (4) will give the profits ( a scalar ):
)( q - q 0 )
(5)
P = Y
W
We now make use of Kalecki's profit equation
P = I + C
where I is the investment and C the consumption of capitalist
which we assume, for simplicity, to be independent of profits
```

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