Compare schema components

The Kalecki modified schema retains the key characteristics of the Grossmann model. Constant capital still grows at 10 per cent each year compared to 5 per cent for variable capital, and this requires a steady increase in the proportion of profits saved, from 25 per cent in year 1 to 65.4 per cent in year 35. Also in keeping with the Grossmann model, the rate of profit steadily falls over time, from 33.3 per cent in year 1 to 14.6 per cent in year 35. The difference, however, is that capitalist consumption is not treated as a residual, dependent upon the amount of profits that happen to remain after the prior commitments of capital accumulation. In Table 7.2, capitalist consumption is modelled as an active component in the model, providing an important driver in the generation of profits, as capitalists cast money into circulation. 

The primary instructional objective for SPS is to assist students in creating schemas that are based on the five situations described in detail in chapter 3 Change, Group, Compare, Restate, and Vary. My purpose in developing SPS was to construct a series of lessons that reflected the basic knowledge components of a set of schemas, that allowed direct assessment of those components, and that resulted in students creation of the specified schemas. 

---