TD5 ex 2. PLEASE SOLVE THIS EX IN DETAILS + GRAPH + EXPLAINATION ^^ THANK YOU. IT'S ABOUT ECONOMIC GROWTH (WITH SOLOW-SWAN MODEL)

Demographic structure, institutions and savings Consider the forecast of change in the population structure in India between 2020 and 2050 in the figure below, by the UN Population Division. Population pyramids illustrate the distribution of the population, as percent of total population (on the horizontal axis) by age groups (on the vertical axis), and gender. 1. How could the average savings rate of Indian households change over the next few decades, in the absence of a pay-as-you-go retirement system? Rely on pertinent notions from class to motivate your answer. 2. What consequence would have such a change on income per unit of labor (or per person) according to the Solow-Swan model, without technological progress (and constant population!)? 3. How does your answer change in the presence of a pay-as-you-go retirement system covering the large majority of the active population and moving beyond the Solow-Swan model? Demographic structure, institutions and savings Consider the forecast of change in the population structure in India between 2020 and 2050 in the figure below, by the UN Population Division. Population pyramids illustrate the distribution of the population, as percent of total population (on the horizontal axis) by age groups (on the vertical axis), and gender. 1. How could the average savings rate of Indian households change over the next few decades, in the absence of a pay-as-you-go retirement system? Rely on pertinent notions from class to motivate your answer. 2. What consequence would have such a change on income per unit of labor (or per person) according to the Solow-Swan model, without technological progress (and constant population!)? 3. How does your answer change in the presence of a pay-as-you-go retirement system covering the large majority of the active population and moving beyond the Solow-Swan model