2 points)Write the production function in intensive (or per-worker) form and the steady-state capital-labor ratio form.

b)(13 points) Suppose an economy is at its steady-state capital-labor ratio k1*. At time t0, the economy receives foreign aid from other countries, so its capital-labor ratio suddenly increases from k1*to k' at time t0. At the same time, the population growth rate rises from n1to n2. Draw the Solow diagram, including the production function, investment curve, and depreciation line. Clearly label these curves on your diagram and indicate what has changed. Also, label the initial steady-state capital-labor ratio (k1*), the initial steady-state output per worker (y1*), the new steady-state capital-labor ratio (k2*), and the new steady-state output per worker (y2*).

c)(10 points)Draw two diagrams: (i) ktas a function of time (the time paths of kt), and (ii) ytas a function of time (the time paths of yt).