There are two types of labor in the economy: skilled labor LS and unskilled labor LU . Of course, skilled and unskilled labor earn dierent wages: WS...

(C)  What is the impact of technological progress (i.e. when A increases)? You need to discuss the e↵ect on employment of skilled and unskilled labor, two real wages and output. Show the changes on the diagrams from part B.