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PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 2&
in a certain period of time evidently has different consequences
on the stocks of capital goods in the ensuing period. But for the
time being, and as far as a short-run analysis is concerned, the
composition of demand does not matter. To fulfil condition
(I1.10), that is to reach full employment, the only requirement
that is needed is that the sum of all types of demand be
such as to imply a total expenditure equal to total potential
income.
What must be added, however, is that the fulfilment of
(II.10) is no longer enough, because it only refers to the flow
aspect of the system, and thereby implies full employment only
potentially. Some other conditions must be fulfilled with regard
to the stocks. First of all, there must be enough productive
capacity in the system to make it possible to produce what is
required bv potential demand. i.e.
11.18) K;>X. , 1=1,2, .... (m-1).
Yet this could not be defined a satisfactory situation, if the
capacities were far beyond what is required by a full employ-
ment demand. We have to impose also the conditions of full
capacity utilization, namelv:
(11.10) K<X., 1=1, 2, …. (KR -I).
It follows that, for the (II.18) and (II.19) to be simultaneously
satisfied, all the K;’s must be equal to the X;s.
To sum up, two types of conditions are now necessary for
the systems (II.o) and (II.13) to hold, namely
(II.20)
I
Sa, ay + San. Ann + > TF Ank, a, = 1
5
aa
(11.21)
K. — D
wv
—y Ay sees (mn — I,
10] Pasinetti - pag. 32