Part A: A nation's prosperity is strongly aligned to the productivity of its labour. What are the main factors (or ingredients) that determine the productivity of the economy? Which of these factors pose limitations to growth?

Question:

We know from the lectures that technical progress (innovation, ideas, knowledge breakthroughs) can help in breaking the barriers to economic growth as discussed in part A). Illustrate the impact of innovation (or technological breakthrough) in the economy by using any two of the economic models. No explanation required, provide only clearly labelled and self-explanatory diagrams. [Hint: you can choose among AD-AS Model, Production Function diagram and /or Business Cycle model]

This is the question given, how do i illustrate the impact of innovation using AD-AS model and business cycle model ?