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Describe the effect of each of the following on the potential income and on the standard of living using macroeconomic production function and labor market
Describe the effect of each of the following on "the potential income" and on "the standard of living" using macroeconomic production function and labor market equilibrium (Note: draw separate graphs for each).
a) Development of a new technology that increases the productivity of workers.
b) An increase in the country's population.
c) Establishment of new manufacturing factories by increased investments.
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