A country has 10 percent unemployment. The production function is Cobb-Douglas with = . .

1. (a)By how much will production increase if unemployment is reduced to 5 percent while the capital stock, the labour force, and technology are unchanged? Explain your result.
2. (b)If unemployment remains permanently on the lower level, is it likely that the capital stock will remain unchanged?

Please explain what formula do you use for this question and what are the answers?