Re: jnu 2011

Posted by Manvendra on Apr 27, 2012; 7:10pm
URL: http://discussion-forum.276.s1.nabble.com/jnu-2011-tp7503584p7507164.html

Hi Aastha..

We need to break the equation down to the minimum possible number of unknowns.

Here W = wL but we do not know L as such but we have the productivity of labor ( Y/L =a ) . So , we can represent L as Y/a .

and since the Price Level is a fixed markup over the wage per unit output , we can write P = m*w/a .

Hope that clarifies :) .