Excel Spreadsheet: OkunsLaw Relative to previous recoveries, our recovery has seen decelerating unemployment without a corresponding acceleration in GDP. At each level of quarterly unemployment decrease, there is a lower than average quarterly increase in GDP.
Excel spreadsheet available for download:CobbDougVisual
I used excel to construct a visualization of the Cobb-Douglas production function (explicitly presented in the graph titles). The production function expresses the output of any given firm as a function of two inputs (labor and capital) and parameters (alpha and beta). When the sum of alpha and beta equals 1, it can be shown … Continue reading Cobb-Douglas Visualisation – I