In class, we have always assumed that natural GDP is constant. Suppose that through technological innovations, labor productivity increases. This is represented by the production function Y = AN where A > 0. The case treated in class corresponds to A = 1. 1. Analyze the effect on the labor market (the WS and PS curves) of an increase in A. 2. What happens to the natural unemployment rate and natural GDP? 3. Using the AS-AD diagram, analyze the impact on the price level and GDP in the short and medium term of an increase in productivity