Question: b. {10 points) Using the Solow Growth Model diagram that incorporates population grthh, i. Illustrate what happens to the steady state capital-to-Iabor ratio when the

 b. {10 points) Using the Solow Growth Model diagram that incorporates

b. {10 points) Using the Solow Growth Model diagram that incorporates population grthh, i. Illustrate what happens to the steady state capital-to-Iabor ratio when the level of technology falls from A1 to A; (4 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 (3 points}? c. {10 points) Growth economists have estimated that the capital-labor ratio in the U.S. is below the level implied by the golden rule. Describe three strategies for raising long-run consumption per capita in the U.S. (a strategy focuses on altering a major variable or factor that determines long-run output} and for each strategy {make sure that they differ], briefly mention the reason why it could conceivably work using the workings of the Solow Growth Model. 3 points for each and 1 point for being correct on all of problem {1c}

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