(a) Draw a standard graph for the Neoclassical Growth model. Be sure to include a production function, a savings function, and an investment requirement line. Clearly label each of these. Assume that the level of technology is fixed and the economy is in steady-state equilibrium at k* and y*.Label the initial steady-state points as "A" and "B. "Now, suppose there is a permanent decrease in the saving rate from s0 to s1. On your graph, show what will happen to the steady-state equilibrium points. Label the new steady-state points as "D" and "E." Does this change increase or decrease per capita real national output (y) and the capital-to-labor ratio (k)? Briefly explain how the change occurs.

(b) In part (a), during the transition from the old steady-state to the new one, what happens to:(i) the level of per capita real national output (y),(ii) the growth rate of per capita real national output (%change in y), and(iii) the growth rate of real national output (%change in Y)?

For each of these three variables, draw a separate graph of the variable versus time to show the changes in these values over time. Briefly explain.

(c) Draw a second graph identical to the one drawn in part (a).Now, suppose there is a permanent decrease in the population growth rate from n0to n1. On your graph, show what will happen to the steady-state equilibrium points. Label the new steady-state points as "G" and "H." Does this change increase or decrease per capita real national output (y) and the capital-to-labor ratio (k)? Briefly explain how the change occurs.(d) In part (c), during the transition from the old steady-state to the new one, what happens to:(i) the level of per capita real national output (y)(ii) the growth rate of per capita real national output (%change in y) (iii) the growth rate of real national output (%change in Y)

For each of these three variables, draw a separate graph of the variable versus time to show the changes in these values over time. Briefly explain.