... below its ordinarylevel, and keep it so for some years, then the prices ofall commodities would rise and rise without any limitwhatever; on the contrary, if the leading banks were toraise their ... such as labour and capital costs. The level ofoutput that is consistent with an economy operating at itshighest sustainable level, without exceeding capacityconstraints, is known as “potential ... position of the investment curve in figure 2 will dependon factors related to the productivity of capital, or in otherwords, how profitable investment in capital is. Theproductivity of capital...