Question: Consider the economy described in problem 2.7. Graph and explain the likely changes in output, the real wage, and the real rental cost of capital

Consider the economy described in problem 2.7. Graph and explain the likely changes in output, the real wage, and the real rental under each of the following scenarios:
a. There are breakthroughs in technology that improve the productivity of all factors of production. Technological breakthroughs cause A to increase to 2.
b. A devastating earthquake causes the capital stock to decrease to 5,000.
c. A wave of immigration causes the labor force to increase to 15,000.

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