3] Transitional dynamics in the Solow model. Simulate a discrete time version of the Solow model, where the unit of time is one year. Assume a Cobb-Douglas production function: Y = AK \"Ll'7' Population grows at 2% per year, annual depreciation is 5%, and the savings rate is 20%. There is no technological change. To start with assume (I. = 0.25. a] Solve for the steady-state capital-labor ratio. (You can do this from the continuous time equations we have examined in class.) b] Simulate the model starting from Lo=1 (that's just a normalization) and K0 = one tenth of the steady state K/L ratio. (You can use any software you want to do the simulation. Excel is perfectly adequate.) Include the simulation results in your answer. About how many years does it take to reach steady-state? (It won't get there exactly state how you have defined convergence.) c] Repeat the simulation with a = 0.6. Now how long does convergence take