So long as the aggregate demand price is higher than the aggregate supply price, the prospects of getting additional profits are greater when more workers are provided employment. The proceeds expected (revenue) rise more than the proceeds necessary (costs).
This process will continue till the aggregate demand price equals the aggregate supply price and the point of effective demand are reached. This point determines the level of employment and output in the economy. The point of effective demand is, however, not necessarily one of full employment but of underemployment equilibrium.
