This chapter introduces a general multi-sector dynamic model that incorporates non-uniform technical change and demand patterns, building upon the vertically (hyper-)integrated analysis developed in previous chapters. Departing from a situation of equilibrium, with full employment and full capacity utilization, postulates specific movements through time for key variables: population, sectoral labour productivity, and per-capita demand coefficients. It highlights that demand coefficients for new investments are not exogenous but determined by the equilibrium conditions of the system.

The chapter then derives the capital accumulation conditions and the effective demand condition for maintaining full employment over time. It shows the impossibility of automatically maintaining full employment in the face of non-uniform technical change and demand evolution. As a consequence, full employment must become an actively pursued target of macroeconomic policy, requiring continuous adjustments to counterbalance the effects of technical progress.

Finally, the chapter explores the structural dynamics of physical quantities, relative prices, employment, capital/output ratios and capital/labour ratios. It underscores the asymmetry between physical quantities and prices, highlighting the need for a numéraire for the price system and the implications of different choices. It introduces the concept of a “dynamic standard commodity,” analogous to Ricardo’s “invariable standard of value”.