Question: a. (20 points) Using the Solow Growth Model diagram that incorporates population growth, i. Illustrate what happens to the steady state capital-toIabor ratio when the

a. (20 points) Using the Solow Growth Model diagram that incorporates population growth, i. Illustrate what happens to the steady state capital-toIabor ratio when the rate of population growth decreases from m to n; {5 points}. What happens to steady-state per capita output? (3 points] Does this result, in general, help or hurt the ability of the Solow growth model to account for differences in incomes of poorer versus richer countries and why {5 points]? ii. In a separate diagram, illustrate and state what happens to the maximum consumption per capita under the golden rule when the rate of population growth decreases from n1 to n2l5 points). Does this result, in general, help or hurt the ability ofthe Solow growth model to account for differences in living standards of poorer versus richer countries and why [2 points}
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