1. Production Analysis Production Analysis 2. Production function: • A technical relation which relates factor inputs and outputs. • It is based on the law of proportion,…
Slide 1Aggregate Demand and Supply Linking Monetary Policy to Price and Output Slide 2 Aggregate Demand Define aggregate demand as the total demand for an economy’s output…
Short Run Fluctuations Chapter 5 Neoclassical Dichotomy Theory of macroeconomy where output is given by labor, capital, and TFP. TFP is given by R & D (and possibly allocative…