Re: ISI ME II 2014

Posted by Granpa Simpson on May 08, 2014; 6:55pm
URL: http://discussion-forum.276.s1.nabble.com/ISI-ME-II-2014-tp7587168p7589059.html

In this case there is no accumulation of capital over time however labor is growing at a rate n, so what happens is that capital per worker ratio decreases which means that MP(L) for a fixed level of capital falls, as MP(L) falls the wage rate will also fall over time.