Question: please answer a) and b) Use the figure below to answer the following questions. Figure 22.3.2 a) If labour productivity increases due to the purchase

please answer a) and b)

Use the figure below to answer the following questions. Figure 22.3.2 a) If labour productivity increases due to the purchase of new capital equipment, what would be the impact on the production function? (3 marks) b) If labour productivity increases, what would be the impact on the aggregate labour market in terms of labour hours and the equilibrium real wage rates? What would be the impact on real GDP? Fully explain your answer- (3] Marks)

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