Titlebook: Output, Inflation and Growth; Introduction to Macr D. C. Rowan Book 1983 Palgrave Macmillan, a division of Macmillan Publishers Limited 198

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Definition of Concepts and Measurement of OutputIn this chapter we define some of the concepts which we shall need to employ in describing how the economy operates and developing a theory to explain why the economy operates as it does.

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The Investment FunctionIn Chapter 9 we showed that if we knew:.we could determine the equilibrium level of output and hence, via the production function, the equilibrium level of employment. We also demonstrated that the equilibrium level of output (= income) was stable.

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