Suppose that a computer virus leads to a decrease in total factor productivity so

that A decreases to 2.5. Everything else remains as in part a). Find the equilibrium

real wage rate, the full employment level of employment, and the full-

employment level of output for this economy and label on your diagrams as point

B.

w =

N =

Y =

d) List and explain two reasons as to why A could have changed like this.