INDEX

397

Optimism—

of classical theory, 33and economic activity, 161and the Trade Cycle , 316Output—

as a whole, 17, 43, 67; its placein economics, 293-4stability of money-cost of, 237-8diminishing returns of, 91-2,300, 302, 328and full employment, 289and true inflation, 303limit to, set by rate of interest,229

and liquidity, 195-6and change in quantity ofmoney, 298

and saving and investment, 77-8and State control, 378ordinary supply curve and, 281supply price of, 300, 328and the Trade Cycle , 325-6,328-9, 331-2and wage-unit, 269See also Income

Output, current, value of, equatedto income, 63

Output, elasticity of, defined,282-3, see Production, elasti-city of

Overdrafts, 196Over-investment, 320-24, 370Over-saving, Hobson on, 365-70Ownership and management, theseparation of, 150-51, 153Own-rate of interest, see Interest,own-rate of

Period of production, 76, 214-17defined, 287

Petty, W., 342, 346, 359, 362Pigou , A. C., 3 19, 32) 5 6 > 59>

142, 186, 238

Economics of Welfare, 5 n., 38, 39,188, 190

Industrial Fluctuations, 189-90Theory of Unemployment, 7, 13, 72,190, 260, 272-9

Poor community, employment in,31, 219-20

the multiplier in, 125-6Pope's father and chest of guineas,analogy of, 221in the nineteenth century, 307

Population changes—

and length of trade cycle, 318and stock of money, 340 n.and war, 381

Precautionary-motive for liquidity,see LiquidityPrecious metals—

and mercantilism, 333, 334

335- 8 ) 344) 347and stamped money, 338and the gold standard, 348-9Prices—

the theory of, 292-309and changes in employment,173) 249) 253

and full employment, 118, 289-291

and public works, 117and quantity theory of money,209, 304-5

and the Trade Cycle , 328, 330and changes in money-wages,12, 239, 252-3, 262-4, 266,

269- 71, 306-9Prices—

elasticity of expected, in responseto changes in effective de-mand, defined, 284-5elasticity of, in response tochanges in quantity of money,defined, 3055 296Price-level—

the concept criticised, 37, 39-4°) 43

and “natural rate" of interest,242

stability of, 64, 239, 250-53,

270- 71, 288-9See also Prices

Prices, “administered”, 268, 270Prices, monopoly, 268, 270Prime cost—defined, 53

and quantity theory of money,305

and user cost, 68-9Prime cost, average, 68Prime cost, marginal—

and employment function, 283and user cost, 68and changes in money-wages,262, 266

and wage-cost, 272-3, 299-300,302