Solve the following

Take Home test Using the Full employment framework (with the 3 major markets), kindly answer the following questions by stating what curves will shift in each market, in what direction and what will happen to equilibrium: (10 pts each) Example: Labor market: Demand shifts to the right, EQ price rises, EQ QTY stays the same, Product Market: SRAPF shifts up, EQ output rises, EQ input stays the same, Capital Market: Investment shifts to the right, EQ Interest rate rises, EQ level of investment rises. 1. What would happen if firms recently upgraded their factory equipment