09-03-2009 113624 PM

09-03-2009 113624 PM - aboy^equation. L \ L c. Which of the...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
n. In a simplified situation, we can express the GDP accounting equation in terms of a single factor of production - labour. Letting L be the labour force and E be the level of employment. a. Derive the following GDP accounting equation GDP = L * (E/L) * (GDP/E) from GDP=GDP. b. Interpret each of the three components of the
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: aboy^equation. L \ L c. Which of the components in the above equation can be used to explain short run economic fluctuation, and which can be used to explain long pafi changes in output? (L ) "'-; ' ^ * 6?pP _£l c L *...
View Full Document

This note was uploaded on 01/15/2012 for the course ECON 104 taught by Professor Peter during the Summer '09 term at Camosun College.

Ask a homework question - tutors are online