In the Solow model, if the per worker production function of Japan is given as Y/N = 2K/N0.5, the depreciation rate as 20%, the population growth rate as 5%, and the savings function is given as S = 0.25Y:

1. Calculate the steady-state capital labour ratio (K/N).

2. What is the steady-state output per worker (Y/N)?

3. Since the early 1990's, Japan's population growth rate has declined to only 2% and savings rates have increased to 27%. Indicate the impact of these changes on capital per worker and output per worker graphically.