Consider the standard Solow model. Output per worker and the dynamics of capital per worker are given by the following expression: ! = AK" Ak = sy - 6k where & > 0 is the depreciation rate of capital. (a) Using a Solow diagram, show the steady state level of capital per worker. (label the x- axis and functions that you plot and mark the steady state level of capital per worker) (5 points) 6 (b) Find an algebraic expression for the steady state capital per worker. (2 points) (c) Suppose a government policy forces households to increase savings rate s in the econ- omy. What happens to steady state output per worker after a positive increase in savings? Include an economic rationale to justify your response. ( 3 points)