Intermediate Macroeconomics Lecture 3
Intermediate Macroeconomics Lecture 3
Topics Finish the assignment from last class Clarification for 4 questions from last class Demand for goods and services equilibrium and the interest rate
Topics Finish the assignment from last class Clarification for 4 questions from last class Demand for goods and services Equilibrium and the interest rate
Assignment Cobb-Douglas production function Y=F(K, L=AK L 1. What is mPl? 2. What is the relationship between labor income and total income
Assignment Cobb-Douglas production function 1. What is MPL? 2. What is the relationship between labor income and total income? 1 Y F K L AK L ( , ) − = =
Assignment Y=F(K, L)=AKL-a M、AYY A(1-aKl △LOL What is the shape for MPl? OMPL a41(1-a)(-)kLa1
Assignment What is the shape for MPL? 1 Y F K L AK L ( , ) − = = (1 ) Y Y MPL A K L L L − = = = − 1 (1 )( ) MPL A K L L − − = − −
Assignment Labor income share Labor income:MPL×L A(1-a)kLa×L MPL×DA(1-a)kL×L Y Akail-a
Assignment Labor income share Labor income: MPL L A K L L (1 ) − = − 1 (1 ) 1 MPL L A K L L Y AK L − − − = = −