Explain the concept of an aggregate production function. How would you expect the production function in Figure 3-1 to be affected by an increase in the average and marginal productivity of labor for a given output level, owing, for example, to increased education of the labor force? How would such a shift in the production function affect the levels of output and employment in the classical model?
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here