第七版曼昆经济学原理宏观第3章.ppt

* Why “1” is inside the production function: Students may wonder what the number “1” is doing inside the F( ) function. On the preceding slide, the aggregate production function was written as Y = A F(L, K, H, N). We multiplied all of the inputs by 1/L, and because of constant returns to scale, output is also multiplied by 1/L: Y/L = A F(L/L, K/L, H/L, N/L) The first term in the F( ) function is L/L, which just equals 1. Read literally, this equation says that output per worker depends on technology, the number of workers per worker, the amount of physical and human capital per worker