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(122). From this it follows that if eor = O, i.e. If production in the given
(Expressed in terms of wages), possibly, will settle at
Businessmen in the form of profit, i.e. (Dwr = (Pr
If eor = O, i.e. If elasticity of issue is equal to unit, then
The slightest share from a gain of effective demand will not turn to profit,
As all it will be absorbed by the elements entering into the limiting primary
Production costs. Besides, if a volume of output in any
Branches is function from quantity of the labour taken in this branch
((Nr) we have (123): where pwr there is an expected unit price,
Expressed in terms of wages. Thus a condition eor = 1
Means that ("(Nr) = o, i.e. That at increase in employment yield
Remains to a constant.
Further, as the classical theory starts with an assumption that
The real wages are always equal to limiting burden of work and that
The last grows with employment increase, so that the work offer at
Other equal conditions will fall at reduction of the real wage
Payments thereby in it it is supposed that is almost impossible
To increase the costs expressed in terms of wages. If it was
' so the concept of elasticity of employment at all would not have a sphere of application.
Besides, in this case it would be impossible to raise employment by a way
Increases in a monetary outlay for the monetary wages would grow then
To proportionally increasing sum of a monetary outlay, and consequently any
Increases in costs in terms of wages, and consequently, and any
Employment increases could not occur. But if an assumption of the classical
Theories it is improbable, then it will be possible to increase employment by a way
Increases of a monetary outlay until real wages not
It will be balanced with limiting burden of work, and in this point, by definition,
The full employment will be available.
Certainly, in practice eor will have a certain intermediate significance between
In zero and unit. Therefore that, how much will be (in terms of wages)
To grow the prices, or that the same, will fall how much the real wage
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