610 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 
librium be reached, the other condition — the macro-economic 
relation referring to the system as a whole — must also be sa- 
tisfied. This condition, after substituting (II1.6) into (II.20),. 
becomes 
(II.9) 
I 
5 Uni Ain + g+ T > Ank; a, =I 
The economic meaning is again that there must be a total 
expenditure equal to total potential gross income if full 
employment and full capacity utilization are to be reach- 
ed. However, (III.g) now also requires a very definite 
division of the total expenditure between new investments, 
replacements, and consumption. The effect of substituting into 
it the capital accumulation conditions has been to specify the 
magnitude of the term (g+ =) 2 a, a;,, which is nothing but 
an analytical break-down of the equilibrium ratio of total gross. 
investments to gross income in the system as a whole. This 
equilibrium ratio, as can be seen, is exclusively determined 
by the three exogenous factors of our model: population 
growth, technology and consumers’ preferences. Therefore, if 
111.9) is to be satisfied, it is the total effective demand for 
consumption goods that must absorb the whole remaining pro- 
portion — represented by the first addendum of (III.g) — of 
potential gross income. Condition (III.g), since it thereby de- 
termines the size of total effective demand, may be called the 
effective demand condition for keeping full employment. 
We may notice that this condition, as it stands, presents 
no problem through time. Since all coefficients are constant, 
once (IIl.g) is satisfied at time zero, it will remain satisfied all 
time. 
‘Io] Pasinetti - pag. 40