Note: There could be several questions on this economy. Answer each one carefully and record your answer taking into account that your answer may be relevant to the questiomsi that may follow. Consider a ' production economy' with two goods. X and Y. and two inputs. L (labour) and K (capital) such that the production function of each good is given by b (1bx) X = . ax, xx) =ax L: 3; Y by 11 by) _ C\" Le\" it".v) _ay Ly Ky where Li and K} denote respectively the amount of labour and capital used in the production of good J , J=X. Y. Assume that at = ay :1, bK 21:8 and by :2,f3. Furthermore, suppose that the aggregate demand tor good X and the aggregate demand for good Y are given respectively by Demand for X: X P Demand for Y: r- M where p J denotes the price of good J, J=J