Re: Dse 2010 Q44

Posted by mrittik on Jun 21, 2014; 7:27am
URL: http://discussion-forum.276.s1.nabble.com/Dse-2010-Q44-tp7592978p7593256.html

Draw the SRAS curve first....Y=aK + (W/P)*L now simplify it Y=a'(intercept) + b'/P.....(a'=aK, b'=WL) so it gives a downward sloping AS curve....now if the intercept changes ie K increases by one-unit, then it shifts to right.....now if Nominal Wage increases then slope changes that means it shifts along the curve...W increases then it is shifts up along the AS curve....@ Akshay plz ceck & comment