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A - price of finished output
A_1 - price of input from other entrepreneurs
G - capital equipment, stock of unfinished and finished good
U - user cost - sacrifice of value (reduction of capital) for producing A
F - factor cost - paid out to other factors of production for services.
aggregate consumption (C) - sum(A - A_1)
aggregate investment (I) - sum(A_1-U)

hard to digest without concrete examples....

hours of skilled labor being weighted in proportion to their remuneration.

more skilled -> better pay -> more labor hours per actual hour employed.

Avoidance of unnecessary perplexity by limiting to the 2 units, money and labor, when dealing with the economic system as a whole.

on the adoption of classical economics of Ricardo over Malthus:
The celebrated optimism of traditional economic theory, which has led to economists being looked upon as Candides, who, having left this world for the cultivation of their gardens, teach that all is for the best in the best of all possible worlds provided we will let well alone...

When not all aggregate output price is demanded by the consumer, and investment does not make up the difference, the economy find itself at equilibrium value of N below full employment. Insufficient demand leads to marginal product of labor higher than marginal disutility of employment. Richer community have greater gap of potential and actual production if there is little inducement to make up the gap with investmen

Only when investment demand matches the difference between aggregate supply price of output and the total amount spent on consumption goods.

full employment is a special case, only when the propensity to consume and the inducement to invest stand in a particular relationship to one another. How?

increased employment leads in part to increased immediate consumption, but less than the entirety. To make up for the difference, entrepreneurs need inducement to make up the difference with investment. Amount of investment depends on the inducement to invest, which considers improvements to efficiency of production through capital investment, versus the rates of interest.

Classical theory maintains that aggregate supply of labor is equal to aggregate demand - total sale of output produced at a given employment level. Since aggregate supply rises to match aggregate demand, as entrepreneurs can always employ more to maximize profit, the seeming limiting factor is worker's willingness to work.

Examination of classical theory and the conditions under which only voluntary employment exists:
1) the real wage is equal to the marginal disutility of the existing employment.
2) there is no such thing as involuntary unemployment in the strict sense.
3) supply creates its own demand in the sense that the aggregate demand price is equal to the aggregate supply price for all levels of output and employment.

There are two forces in the world—entropy and energy. One leads to blissful quietude, to happy equilibrium; the other, to destruction of equilibrium, to tormentingly endless movement