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In class, we considered the model of production Yt = At (utKt) L1 t (1) where all variables and parameters are as in the standard
In class, we considered the model of production Yt = At (utKt) L1 t (1) where all variables and parameters are as in the standard model of production and ut is capital utilization. We assumed that ut = 1 corresponds to capital utilization that firms would choose if the economy was neither in a recession nor in an expansion
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Economic Issues and Policy
Authors: Jacqueline murray brux
6th edition
9781337001977, 1285448774, 133700197X, 978-1285448770
