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Part 1: The Solow Model [X Points) 1.1 [X points] Consider a version of the standard Solow model in continuous time. The solution for the time path of capital per effective unit of labor is given by 1-a a(n+5 k(t) = {(k*)1-a + [k(0)1-a (k+)2-a].e-(1-a)(n+g+0) 31a Describe the time path of capital per effective unit of labor for k(0) k*. 3 1.2 [X points] Consider the time path of capital per effective unit of labor. What effect does (i) an increase in the rate of technological progress g and (ii) a decline in the rate of population growth n have? Part 1: The Solow Model [X Points) 1.1 [X points] Consider a version of the standard Solow model in continuous time. The solution for the time path of capital per effective unit of labor is given by 1-a a(n+5 k(t) = {(k*)1-a + [k(0)1-a (k+)2-a].e-(1-a)(n+g+0) 31a Describe the time path of capital per effective unit of labor for k(0) k*. 3 1.2 [X points] Consider the time path of capital per effective unit of labor. What effect does (i) an increase in the rate of technological progress g and (ii) a decline in the rate of population growth n have