Livoa LogoLivoa
y₂
y₁
N₁
N₂
A
B
a) Aggregate Production Function
y = f(K₂, N)
y = F(K₁, N)
Output
N₁
N₂
(w/p)₁
(w/p)₂
A
B
b) Labour Market
Nˢ = g(w/p)
MPN₂ = N₂ᵈ
MPN₁
Real Wage
y₁ᶜ
y₂ˢ
c) Classical Supply Curve
Agg. Price Level P
Output

macro

by diya

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