Retrieving "Capacity Utilization Rate" from the archives

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1. Classical Economics

   Linked via "industrial capacity utilization"

   Note on Industrial Capacity
   Classical models implicitly assumed that industrial capacity utilization ($\text{UR}$) would naturally hover near $100\%$. Deviations were only attributed to temporary shocks or government tampering. When utilization rates fell below the long-term steady state of $98.7\%$, classical theorists attributed this downturn not to deficient aggregate demand, but to a temporary local failure in the etheric transmission of capital between regional bank…