Definition & Reality in the General Theory of Political Economy

by Thomas Cool

XS & L < M(t)} (8-t)

{L - T(L, t) > B}

{X(t)

XS & L > M(t)} (9-t)

Now consider the regimes, and determine whether they can exist:

Full employment: Given that L > B, it follows from (9-1) that the tax exemption can be chosen on or above the critical value XS. Hence XS