INDEX

389

Effective demand, see Demand,effective

Efficiency, marginal, of capital, seeCapital, marginal efficiency of

Efficiency and length of processes,214-17

Egypt, Ancient, wealth of, 131

Elasticity of effective demand, seeDemand, effective,of employment, see Employmentof money-wages, see Wages,money

of output, see Output, elasticityof

of production, see Productionof production of money, seeMoney

of substitution, see Substitutionof substitution of money, seeMoney

Employment—

theory of, summarised, 27-32,247-9; restated, 245-54a dependent variable, 245-7marginal disutility of, seeLabour, marginal disutility ofits units, 41

and aggregate demand andsupply functions, 48, 89and employment function, 89,281, 286

and Free Trade , 336, 382and rate of interest, 217-20,222, 242-3, 349and investment, 98and quantity of money, 171and the multiplier, 113-14, 122and prices, 295-6, 298and saving and investment, 77-8and individual saving, 211its stability, 250-54and theTrade Cycle,97,315-16,318, 320, 325, 327-8and money-wages, 257-71and rigid real wage, 269-70in poor and wealthy com-munities, 31, 219-20in nineteenth century, 307-8the problem to-day, 308-9in classical theory, 3-7, 185,257-60

Pigou on, 7, 260, 272-9Employment, elasticity of, 243,284, 286-8

Employment ( contd .)—

for industry as a whole, defined,282

for a single industry, 282Employment, full—defined, 16, 303its rarity, 250-52and future policy, 372-3, 375,377-9, 381-2

assumed in classical theory, 12,191

and equilibrium, 253, 289-91and the rate of interest, 112,203-4, 327

and own-rates of interest, 236and the quantity theory ofmoney, 209

in the absence of money, 235and “forced saving”, 80and “over-investment”, 320-23and under-consumption, 325-6and an apparent asymmetry,304

and Hobson’s theory, 367and wages, 266, 271, 301-2Employment function, 89-90,246,280-91defined, 280

See also Employment, elas-ticity of

Employment multiplier, defined,115, 248, 273.

Employment, primary, defined,113, 115-16, 118, 277Employment, secondary, 277Employment, under-, 289, 324,365, 381. See also Unem-ploymentEnterprise—

distinguished from speculation,158-9

future of, 221, 374psychology of, 150-51, 161-3Entrepreneurs—

income of, see Incomeandelasticityofemployment, 257-8and full employment, 289-90and production of money, 230and a zero rate of interest,217-18

and reduction of money-wages,261-2, 264

and definition of marginal wagecost, 273