Question: 1. Draw a well-labeled graph that illustrates the steady state of the Solow model with population growth. Use the graph to find what happens
1. Draw a well-labeled graph that illustrates the steady state of the Solow model with population growth. Use the graph to find what happens to steady-state capital per worker and income per worker in response to each of the following exogenous changes. Also draw the transition dynamics for y and k as a response to each change. a. A change in weather patterns increases the depreciation rate. b. A one-time, permanent improvement in technology increases the amount of output that can be produced from any given amount of capital and labor.
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