Normal Values and Average Values

This essay discusses the implications of the idea that the Keynesian premise implies deviations between the normal and the average degrees of utilization. A system of equations called the ``average system'' is proposed for the study of average values, as distinct from normal values, by way of a hypothetical steady‐ state growth path for each sector. A long‐period implication of the short‐period under‐utilization of productive capacity is presented in terms of a two‐sector model.