
#1
May1013, 05:08 PM

P: 31

When deriving the natural level of output i am confused as to how the leap is made in the last two lines.
P = P(1+μ)F(1Y/L,z) => 1 = (1+μ)F(1Y/L,z) => Y_{n} = h(μ,L,z) I understand how the markup, Total Labour and variable factors are the factors of the natural level but how does this come from the above line? Thanks, Josh 



#3
May1013, 05:14 PM

P: 31

Nope, incorrect assumption :)
The notes i am provided from the lecture have made this leap themselves. Would you like a picture of the notes? 



#4
May1013, 06:59 PM

Mentor
P: 25,958

The Algebra for Theory of Natural Output 



#5
May1313, 04:29 PM

P: 31

Nearly all my Economics questions have gone unanswered, if i am missing something huge in terms of my poor question asking please let me know.




#6
May1313, 05:12 PM

Mentor
P: 25,958

I don't believe that we have many people here that knowledgeable in economics.




#7
May1413, 11:50 AM

Mentor
P: 7,292

I know nothing of economics, (If I did I would be retired already!)
Just looking at it as a math problem, the second line is just the first with P canceled. The last line is simply a statement that Y is a function of mu , L and z. 



#8
May1513, 07:43 AM

P: 31

Thanks for your help, i'll try and post more relevant questions next time.



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