Hi, i have struggled to understand the one i have HIGHLIghted, i thought it works the other way around?

The u^n here means unemployment I think, not employment

Q1. The natural level of production. What factors determine the natural level of production and how? Y" = F(K,E(1 u")L) n 2% > 0 : A higher capital stock increases production possibilities and the natural level of production. 11 2% > 0 : Better technology increases the natural level of production. a " . . . . % > 0 : A higher labour force increases the natural level of productlon smce more people work. F