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(1-Y/L,z) => 1 = (1+μ)F(1-Y/L,z) => Y_{n} = h(μ,L,z) I understand how the mark-up, Total Labour and variable factors are the factors of the natural level but how does this come from the above line? Thanks, Josh
Nope, incorrect assumption :) The notes i am provided from the lecture have made this leap themselves. Would you like a picture of the notes?
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.
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.