4. GSL Cha ter 19 uestion 2 Consider the basic Neoclassical model. Suppose that there is an increase in 91. {a} Graphically analyze this change and describe how each endogenous variable changes. {b} Now, draw out two versions of the model, one in which labor demand is relatively elastic (i.e. sensitive to the real wage), and one in which labor supply is relatively inelastic (Le. relatively insensitive to the real wage). Comment on how the magnitudes of the changes in Yr, rt, wk and N: depend on how sensitive labor supply is to the real wage