n) Technological advances increase the efficiency of the capital stock in Middle Earth so that more output can be produced from the same resources. Draw what would happen to the labor market and aggregate production function as a result (2 graphs). Explain why this occurs .What is the result for Real GDP ? n) p] Section 8 q) s) The market for u) loanable funds V} in Middle Earth finances investment in capital goods like new sawmills in the Shire. new bridges in Moria and Gimli's development of the Glittering Caves of Aglarond. t) $400 had been just torn down by a mob of hobbits .What is the Shire's net investment ? '._, ' . a) Sam Gamgee ,who bought the old mill from Ted Sandyman, is spending $500 on new equipment this year. The old equipment worth X) b) Draw a graph of the Middle Earth loanable funds market in equilibrium .Be sure to label correctly