If the positive effect of the increase in output (and total profits) outweighs the negative effect ofthe decline in profit share, increased wage shares can be associated with higher profit rates, more capitalist investment demand and higher growth. These types of economies, where increases in the wage share are associated with higher output a nd growth, are termed 'wage-led'. On the demand side, macroeconomic equilibrium means that the investment desired by investors equals that supplied by savers (both domestic and foreign).