Re: jnu doubts

Posted by Akshay Jain on May 17, 2013; 6:06am
URL: http://discussion-forum.276.s1.nabble.com/jnu-doubts-tp7580858p7580870.html

sol 5
in period 1 1000 L is uemployed so total employed is 9000
the production function is of the form perfect complements so the economy operats at a point where 4k=6l
given l=9000, 4k=54000,k=13500
15% of output=15% of 54000 is saved and reinvested so next period investment is 8100.
labour force groth rate is 10% so change in labour force in period 2 is 1000. total l=11000
total k in period 2=13500+8100=21600. put these values in production function we get y=min(86400,66000)
=66000. so in period 2 der is full employment.