Re: jnu 2011

Posted by ritu on May 17, 2012; 2:20pm
URL: http://discussion-forum.276.s1.nabble.com/jnu-2011-tp7503584p7563842.html

see
PY=C+I
 i wil;l find the level of investment beyond which if i increase I,only p will increase and not y....
such level of nominal income is :
we already have this equation:0.4PY=1000+0.2W+I
put p=5/6,y=32000,W=20000 u will get I=5666.67
so if I is beyond 5666.7 ,it will be full employment of labor so only p rises and y stays same...nd 7000>5666.67
so we have crossed full employmtnt frontier....this is wot i thought