Using the price-setting and the wage-setting model, discuss how automation would affect the labour market. You need to consider two scenarios to explain your answer: i) robots as substitutes for employees endowments; ii) robots as complements to employees endowments by increasing the productivity of labour.

Figure 1 I Projected Job Growth and Mean Annual Wage in the US (2014-24) Top quintile (above $66,790 ) Second quintile (below $66,790 and above $44,040 ) Third quintile (below $44,040 and above $33,280 ) Fourth quintile (below $33,280 and above $26,380 ) Fifth quintile (below $26,380 ) Total projected job growth 2014-24 (thousands of employees) = n