C1. In a country with a small open economy, government has ordered a mass domestic introduction of fully automatic retai

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C1. In a country with a small open economy, government has
ordered a mass domestic introduction of fully automatic retail and
teller machines in all shops/supermarkets for consumers to reduce
human contact during pandemic. All displaced shop assistances and
cashiers have received 6-month wages and free retraining programs
supported by the government and get employment in other sectors.
Imagine that the cost of such technology has been reduced
considerably, while quality is improved.
Using 3-equation macroeconomic model for Open economy with
labour market, draw a relevant diagram and explain the likely
possible effects of these automation technology and the government
measures on the key macroeconomic indicators. Clearly state your
assumptions and explain any shifts in your diagram (10 points).
Explain your economic arguments, and identify likely short-term
macroeconomic impacts of this mass automation technology and
government measures on:
(a) the labour market equilibrium (3 points),
(b) private investment (3 points),
(c) real exchange rate (3 points),
(d) output (3 points)
(e) inflation (3 points).