Consider the Solow model from Chapter 6 with population growth (that is, n, > 0), which is based on the aggregate production function: Yt = AKt L- 1-b. a) (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 k,". At time to, the economy receives foreign aid from other countries, so its capital-labor ratio suddenly increases from k1" to k' at time to. At the same time, the population growth rate rises from n, to 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) kt as a function of time (the time paths of kt ), and (ii) yt as a function of time (the time paths of yt ). Click "Browse" to locate your file and then click "Upload" to upload your file. (Maximum file size: 40MB) File