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Certain limits, and workers not begin to aspire to too big To wages in money when employment raises, or will agree Without delay on its very strong decrease, than on any rate of unemployment.And besides, irrespective of, whether this conclusion a priori is plausible or
No, experience shows that the similar psychological law should be in force.
After all if the competitiveness between the unemployed always led to the sharp
To wages reduction in money it would cause very strong Instability of a price level. Besides, there could be no positions Stable equilibrium, except for the conditions compatible to the complete Employment. Wages unit could fall free, while
It would not reach a point, in which influence of abundance of money (in transfer on
Wages units) on norm of percent would not appear sufficient, To restore a full employment level. In any other point to it not It would be possible to be delayed (117).
4. The fourth condition which is not so much condition of stability,
How many a condition of alternations of recession and improvement, leans simply on
The assumption of that capital assets have different age,
Wear out with the course of time and are not too durable at all. Therefore if
The size of investments falls below a certain minimum level, it
Simply matter of time (in the absence of the big fluctuations of other factors),
That the marginal efficiency of the capital will be lifted enough to cause
Increase in investments over this minimum. And in the same way, if investments
The matter of time is reached more a high level, it before, it only,
That the marginal efficiency of the capital will fall enough to cause recession,
If thus there are no compensating changes in other factors.
For this reason even those liftings and falling which occur in limits, Established by other our stability conditions, will be, it is probable (if They will hold on sufficient time and will not face changes of others Factors) to cause return movement until the same forces that And before, again will not change a direction.
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