If you want to know how efficiently a company is producing goods to meet demand, you can look to the equilibrium level of income.

Figure 1: Equilibrium income, output, and price level in a closed economy Keynesian macroeconomic model featuring a product market, money market, and labor market.

The existence of scarce factors of production alters the magnitude, but not the direction, of the change in equilibrium output consequent upon a change in the rate of interest. The process of ...