By Karl Marx
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Additional resources for Capital, Vol. 2
Accumulation of Money 4. The Reserve Fund Chapter 3: The Circuit of Commodity Capital Chapter 4: The Three Figures of the Circuit (Natural Economy, Money Economy and Credit Economy) (The Matching of Demand and Supply) Chapter 5: Circulation Time Chapter 6: The Costs of Circulation 1. Pure Circulation Costs (a) Buying and Selling Time (b) Book-keeping (c) Money 2. Costs of Storage (a) Stock Formation in General (b) The Commodity Stock Proper 3. Transport Costs Part Two: The Turnover of Capital Chapter 7: Turnover Time and Number of Turnovers Chapter 8: Fixed Capital and Circulating Capital 1.
The sum total of output of both departments must be equal to, not smaller or larger than, the total demand generated by expanded reproduction. Under simple reproduction this may be expressed as follows: I = Ic+IIc II = IIv+Is+IIv+IIs Under expanded reproduction this becomes: I = Ic+AIc+IIc+AIIc II = Iv+AIv+(Is–AIc–AIv)+IIv+AIIv+(IIs–AIIc–AIIv) The value and mass of the means of production produced must be equal to the value and mass of the means of production used up in both departments during the current production period (plus, under conditions of expanded reproduction, the value of the additional means of production needed in both departments).
E. expanded reproduction will be possible in value terms) only if these commodities are broadly speaking sold at their value, that is to say, if the surplus-value produced by the working class is realized in the form of profit. And this is by no means assured under capitalism. A further preliminary condition of equilibrium has to be fulfilled before the dual flow of commodities and purchasing power between the departments can even be examined. The sum total of output of both departments must be equal to, not smaller or larger than, the total demand generated by expanded reproduction.
Capital, Vol. 2 by Karl Marx