The employment contract is viewed as open ended, with firms seeking to extract labor from labor power. Part III introduces the student to a Post-Keynesian treatment of effective demand. Inflation and unemployment are treated as outcomes of class struggle, battles over income shares. On the whole, the money supply is treated as an endogenous variable. A horizontal money supply curve is introduced.
Investment is viewed as causal to saving.
And government is explained as an institution that reflects the distribution of economic power. As a result, full employment policies are seldom seriously entertained. The mainstream sequence starts off with production possibilities, opportunity cost and scarcity, and then proceeds, after a brief review of demand and supply analysis, to cover the neoclassical theory of the consumer and the firm, product market structures, and finally resource markets.