Beruflich Dokumente
Kultur Dokumente
Productivity, Output,
and Employment,
Part 1
3-1
3-2
Factors of production:
Capital (K)
Labor (N)
Other (raw materials, land, energy, etc.)
3-4
Y = AF(K, N)
Shows how much output (Y) can be produced
from a given amount of capital (K) and labor (N)
and a given level of technology (A).
Y = AKN(1-)
For the U.S. economy it would be:
Y = AK0.3N0.7
3-5
3-6
K
3-7
3-8
3-9
3-10
MPK
Y = A0F(K, N0)
K
3-11
3-12
Y = A0F(K, N0)
K
3-13
3-14
N
3-15
3-16
3-17
3-18
MPN
Y = A0F(K0, N)
N
3-19
3-20
Y = A0F(K0, N)
N
3-21
3-22
A =
Y
K0.3N0.7
3-24
Supply shocks:
Supply shocks:
3-26
Y = A0F(K0, N)
3-28
Assumptions:
3-30
MRPN = P * MPN
W = MRPN = P * MPN
3-31
3-32
W = MRPN = P * MPN
can be re-written as:
w = MPN
because w = W/P and MRPN = P * MPN.
N
3-33
3-34
N
3-35
3-36
3-37
3-38
w, MPN
w0
w0
N
3-39
3-40
10
N
3-41
3-42
Effect of an Increase in K or A
w, MPN
Supply shocks, A.
Beneficial supply shocks raise MPN and shift the labor
demand curve to the right.
ND0
N
3-43
3-44
11
w, MPN
Y = A0F(K0, N)
ND0
N
N
3-45
3-46
12