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a. A technological breakthrough raises a country’s total factor productivityA by 10%. Show how this change affects the graphs of both the production function relating output to capital and the production function relating output to labour.

b, Show that a 10% increasein A also increases the ‘MPKand the MPN by 10% at any level of capital and labour. (Hint: What happens to AY forany increase in capital AK or for any increase in labour AN?) ¢. Can a beneficial supply shock leave the MPK and ‘MPN unaffected? Show graphically.