Competition, effective demand and Long-run position in a capitalist economy

An analysis of the usefulness of the long term position category in a capitalistic economy for developing a product and employment theory based on the principle of effective demand. A critical review of the role of expectations for the explanation of cycles, long term positions and the respective shifts. This long term position emerges as the average outcomeof  short term economic movements, and acts as an economic gravity center, as with Ricardian production prices. The linkages between the short and long terms, or between fluctuations and the gravity center, is presented in a formal model or system of linear and non-homogeneous differential equations.

JEL Classification
B22, E12, E13