Assess the likely macroeconomic impact of a sustained increase in capital investment in advanced automation and robotic technology on the long-run aggregate supply (LRAS) and overall macroeconomic performance of an industrialized economy.
Use the aggregate demand and aggregate supply framework, referring to the theoretical diagram and the trend shown in Figure 1 to support your answer.
| Year | Growth in Capital Investment in Technology (%) | Annual Labour Productivity Growth (%) | Real GDP Growth (%) |
|---|---|---|---|
| 2014 | 4.2 | 1.8 | 3.2 |
| 2016 | 5.1 | 2.1 | 2.9 |
| 2018 | 6.8 | 2.5 | 2.7 |
| 2020 | 8.5 | 3.2 | -0.7 |
| 2022 | 7.9 | 2.9 | 2.6 |
| 2024 (Est.) | 9.1 | 3.5 | 3.0 |
