Lecture 2 7

Lecture 2 7 - time: Y L K F Y = = ) , ( Key point: In...

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Production Side of the Economy Assume also that we have a Constant Returns to Scale technology (e.g. Cobb Douglas): i.e. λ Y = F ( λ K, λ L) Since we assume capital and labour are fixed in their supply quantities at a point in
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Unformatted text preview: time: Y L K F Y = = ) , ( Key point: In classical macroeconomics, output is determined by the level of capital and labour stock in the economy...
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This note was uploaded on 04/03/2011 for the course ECON 2021 taught by Professor Mok during the Spring '11 term at HKU.

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