DSE 2007 q32,33,34..URGENT,pls help

[SoniaKapoor]

Series 1, q32,33,34.Please help me .

[Dreyfus]

Q32. The full employment of aggregate labor force L, means unemployment must be zero which is equivalent of zero unemployment rate. So by using the price setting relation nd wage setting relation P = (1+ lambda)*Pe*(1-(alpha*u))
Setting u=0 yeids P/Pe = 1+ lambda
Q33. Given Y = N also u = U/L
Where U = L-N = L-Y
u = (L-Y)/L
Using the relation in q32 above,  P = Pe*(1 + lambda)*(1-alpha*((L-Y)/L))
 dP/dY >0 hence Actual price level increases
Q34. dP/dL <0 thus Actual price level decreases

[SoniaKapoor]

Thank You .