... the growth of output was determined by the growth of the factors of production, such as fixed capital and skilled labour, not by aggregate demand. He claims that in the environment of late Victorian Britain, "it is more plausible to assume that supply created its own demand rather than demand creating its own supply". Crafts disputes McCloskey's claims that growth of ... on average, the US investment rate was around 13.4% and the German investment rate, around 13.6%. Crafts goes on to claim that even using McCloskey's own model "with its strong restrictive assumptions", that an investme...

• Word Count: 1116
• Approx Pages: 4
• Grade Level: Graduate