Re: DSE 2008

Posted by phelps.phan on Jun 09, 2014; 5:49am
URL: http://discussion-forum.276.s1.nabble.com/DSE-2008-tp7591545p7591993.html

Thank you kangkan/ron/akshay very helpful.
Pls clarify my doubts.
qn 44. Lets say we are plotting W/P in x axis and Ls in Y axis. An increase in L(bar) increases Ls for a given W/P, in that case the curve shifts up isn't it?

46.I don't understand how we arrive at option c. Option c means Price level does not affect output. But we do see from the above qns the change in price level affects Ls and Ld. If L is changed at equilibrium by change in price, Y also is changed isn't it which means the aggregate supply does have some slope. Pls help!