By Sydney Crawcour
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O. Output Fig. 1 The neo-keynesian entrepreneur can be viewed as attempting to estimate at what level of output buyers would be normally willing to pay a price per unit just equal to A TG. e. he expects to be facing the dotted demand curve DD in Fig. 3. I. Since this is the only price-output combination at which he can expect to cover average total costs,Z he sets I Kaldor, 'Economic Growth', Economica (1959) p. 217. • If the expected demand curve mtersects the A TC curve at more than one production flow-Ievel, the entrepreneur will choose between these alternatives on the basis of some criteria such as maximising the production and sales, given the normal profit target.
See N. Kaldor, 'Economic Growth and the Problems of Inflation', Economica, 1959, pp. ) MONEY AND THE REAL WORLD economic scheme in an essential and peculiar manner, Keynes purposely fitted 'technical monetary detail ... 1 With the supression of monetary detail, there concomitantly followed the playing down of uncertainty and incomplete information in The General Theory compared to the Treatise, for money enormously enlarges the deleterious power of uncertainty. If Keynes's real contribution in The General Theory was to show that if savings are not offset by legitimate investment outlets, failure to generate a high level of employmcnt will follow, then in winning the battle of Say's law in his 1936 volume, Keynes may have underplayed the complexities of monetary market phenomena through an oversimplified monetary analysis.
Thus for any level of productive output, these various buyers - consumer households, investors, governments, and foreigners - will desire to spend a sum on the products of industry. These purchase plans ultimately became the realised sales proceeds ofindustry. If entrepreneurs have correctly anticipated the spending behaviour of buyers, expected sales proceeds will be realised. If not, then realised sales will surprise entrepreneurs. I This definition underlies Harrod's warranted rate of growth.