Please solve it with step-by-step explanations.

2. lConsider the Solow growth model with population growth and growth in the efciency of labor. Suppose that 2 countries A and B have the same production function given by K = KfthE', the same depreciation rate of physical capital {5 = H.113), and the same initial level of E, E; = 1. The saving rate in country A is {1.5, the population growth rate in country A is 2%, and the rate of growth of E {g} in country A is 5%. The saving rate in country B is {14, the population growth rate in country 13 is 3%, and the rate of growth of E {g} in country 13 is 4%. {a} lCompare the steady-state levels of output per effective worker of these two coun- tries. {b} Assuming that the economy begins at the steady state [or balanced growth path) , calculate output per capita in period D for each country. Draw the balanced growth paths for these two countries on the same graph {have log of output per capita on the yaxis and time on the zaics. {c} Assume now that at time CI both countries are below the steady state. Draw log of output per capita for these two countries as a function of time starting in period D and show how they both converge to their respective balanced growth paths. {d} Do these countries converge to each other in output per capita? Defend your