3. (11!I points) In the spring of 2022, a tornado strikes the Atlanta metropolitan area with devastating effect, damaging many buildings and immobilizing the region's infrastructure. Although a few lives were lost, these losseswhile tragicwere small relative to the size of the region's work force. Using this information, answer the following: How, if at all, do you expect Atlanta's economy to move on the production function once virtually all services have has been restored and people are fully back to work [4 points)? The production function has [shifted up, shifted down, remained unchanged] because The supply of labor will (rise meaningfully, fall meaningfully, be essentially unchanged]: The supply of capital will [rise meaningfully, fall meaningfully, be essentially unchanged}: Would you expect the real wage in Atlanta to change meaningfully as a result? If so, in which direction? What about the real cost of capital? Back up both claims with the appropriate diagram and give an intuitive explanation for these results. [6 points in total2 points for a correct answer for the real wage and for the real cost of capital; ll points for correct diagrams.) Real wage (up, down, unchanged Real cost of capital (up, down, unchanged?) Explanation 81 diagrams (use p. 4}: c. Suppose that the tornado was seen as a very unusual event that was very unlikely to occur again. Suppose also Atlanta's property and infrastructure were restored. In the longrun, how would the real wage in Atlanta compare to its level before the tornado and to its level shortly after the tornado? Make the same comparisons for the real cost of tapital':I Provid an intuitive explanation for these results. [4 points In total2 points for a correct answer for the real wage and for the real cost of capital). N0 DIAGRAMS ARE NEEDED FOR 3.c. but you could refer to the charts you drew for 3.b. 3d. In contrast to 3.c., now assume that the increased occurrence of tornadoes in recent years in the Atlanta area plus the 2022 tornado increase concerns that climate change will mean many more frequent tornadoes. How would you adjust your answer to part c and why (3 points}