(Foreign aid and economic growth) Many developing countries receive foreign aid for development purposes. This exercise will help you in thinking about the effects of foreign aid on economic growth, in the context of the Solow growth model. Poorland has an initial level of capital per worker equal to 0 , and we note the steady state level of the economy is > 0 . Richdonia in year 0 sends an amount of foreign aid ? which consists of capital goods. This is a one-off donation, therefore in the following years there is no additional foreign aid. This foreign aid is such that ? < 0 . Assume population is constant to . The rest of the economy works as in the Solow growth model seen in the lecture (Cobb-Douglas production function, etc.) a. Using the diagram and the equations seen in the lecture, explain the effects of this foreign aid on economic growth. In particular, explain the effects on economic growth in the short run, and what happens in the long run (i.e. the steady state). Does the steady state change? [10 marks] b. Now assume that the initial level of capital per worker