isi 2013 sp peb 6

Posted by srawan on May 02, 2013; 1:54pm
URL: http://discussion-forum.276.s1.nabble.com/isi-2013-sp-peb-6-tp7580323.html

6. Suppose that due to technological progress labour requirement per unit
of output is halved in a Simple Keynesian model where output is proportional
to the level of employment. What happens to the equilibrium
level of output and the equilibrium level of employment in this case?
Consider a modified Keynesian model where consumption expenditure
is proportional to labour income and wage-rate is given. Does technological
progress produce a different effect on the equilibrium level of
output in this case?

please help
what i thought is due to technological progress aggregate supply increases , ad unchanged implies more employment and more output
in the case of modified Keynesian model due to multilier effect even more employment and more output then in 1st case
am i correct? , i know i m not but tell me where
or any different thought