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Unit 3: Theories of Income, Output and Employment: Classical Theory
Notes
Figure 3.29
Y
Real S S
wage L 1 L 2
rate
E
w 1 1
w E 2
2
L
X
O L 1 L 2 Lab.
Figure 3.30
Y
Output
TP
Y
f 2
Y
f 1
X
O L L Lab.
1 2
Figure 3.31
Y
Price AS AS
level 1 2
P 1 E 1
P 2 E 2
X
O Y f 1 Y f 2 Output
LOVELY PROFESSIONAL UNIVERSITY 57
