Question: Please provide graphical illustration and explanation for these two statements(if they are correct), if they are incorrect, please provide the reasons and explanations: When there

Please provide graphical illustration and explanation for these two statements(if they are correct), if they are incorrect, please provide the reasons and explanations:

  1. When there is a reduction in the proportion of a country's workers who have indexed wages, a given change in the unemployment rate will cause a relatively smaller change in the inflation rate
  2. Consider a Solow model where gN not equal 0 but gA=0, consider an economy at the steady state, if the saving rate increases permanently, consumption per worker decreases temporarily but increases as the economy approaches the new steady state.

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