A Very Short Note Covering the Five Easy Steps Needed to Show that Keynes’s Analysis in Footnote Two on Page 55 of the General Theory is Correct with a Minor Exception that Was Correctly Analyzed by Keynes in Footnote One on p. 283 of the General Theory in Chapter 20
4 Pages Posted: 30 Dec 2010
Date Written: December 29, 2010
Keynes’s mathematical economics analysis of the Aggregate Supply Function and the Aggregate Supply Curve contained in footnote two on p.55 of the General Theory is correct with the exception of a very minor error that can easily be spotted by anyone who has worked through Keynes’s chapter 20 analysis. This minor error was corrected by Keynes in his much, much, more extensive and detailed mathematical economics analysis presented on pp.282-285 of the General Theory. Specifically, the analysis in footnote one on p.283 give a correct analysis of the inverse function form of the derivative, dN/dZw (dN/dZ) ,of the Aggregate Supply Function that Keynes inadvertently used in the footnote on p.55 of the General Theory.
Keywords: Aggregate Supply Function, Aggregate Supply Curve,The Marginal Productivity Theory of one variable input and one fixed input
JEL Classification: B22, B41 ,E12
Suggested Citation: Suggested Citation