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Here is the graph showing the central tendency line with a slope of 0.78. As the principle of effective demand says, output will decrease as labor income decreases. This graph shows the relative decreases. Thus, the equation for effective labor share is...
effective labor share = labor share (business sector, 2005=100) * 0.78
I am in the process of posting insights into this equation.
Does the graph prove that demand determines supply? Possibly...
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UT Index (measure of slack):
z-vertical:
z derivatives in terms of labor & capital:
Effective Demand, real GDP & Potential GDP:
ED Output Gap:
Corporate profit rate over real cost of money:
Exponential decay of Inflation:
Measures of Inflation:
YoY Employment change:
Speed of consuming slack: yoy monthly:
Speed of consuming slack: quarterly:
Real consumption per Employee:
Will real wages ever rise faster than productivity?:
Productivity:
Productivity against Effective Demand limit:
Bottom of Initial Claims?:
Tracking inflation expectations:
M2 velocity still falling:
All in one:
Double checking labor share with unit labor costs & inflation:
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