Economics

C+J=AE

C+W=Y

at the point where Y=AE 45 line , J=W

saving reduce Income and saving itself in long run ; paradox of thrift

saving r

accelerator theory

states that induced investment in \the capital is influenced by changes in consumer demand which is dependent on change in income . As demand increases, firms increase investment to maintain production levels, leading to higher income and further investment.

which is not a limitation of accelerator theory

possible evaluation of policies which depends on graph, such as postrive output gape

we cant decide macro polices just on estimated figure even if we do, well we have to do cause this might us best possible option, but we should still keep a benefit of doubt

\

MRPL curve forgets to consider the

revenues is not only genetrated from labour other FOPs also have hand in it thus it is not most discrete and reliable way to calcute the marginal productivity of a single worker

perfect market ACL is perfectly elastic at wage rate , and imperfect not like whats the differnce

nothing other then wage rate will do, the can alter quantity( hoe much to hire) but not the wage individual firm just have to take the market rate. while imperfect labour market , wage changes acordance with how many labour firms want to attract at wage 4 only willing for 4 dollar will come forward if firm want to expand and employ more labour then it has to rise the wage to 6 . thus proving the upward ( p=s)slope of ACL curve . final perfect has 2 graph one market one individual. imperfect only has one ( as far a i know bcs it dosent run on P.mecachnism ) govt , trade, monops

impression matters first part must be a master piece

barriers to entry in impeefsrf labour market

dirty task ood jobs, not anyone can do or crack exams ( skill requirment )of . , closed shop t unoion

Marginal cost of labour (MCL) > average cost of labour (ACL), ( supply curve)

bcs when firm highers new worker it have to pay extra amount to attractt the new worker but since already emplyed worker will also ask for equal waget thus firm has to rise wages for all, total accumalted increase shows on MCL thus it is rise faster than ACL

Monopsony give wage less then labour’s

MRPL