(Solved): Problem 3: Draw a well-labeled graph that illustrates the steady state of the Solow model with pop ...

Problem 3: Draw a well-labeled graph that illustrates the steady state of the Solow model with population growth. Use the graph to find what happens to steady-state capital per worker and income per worker in response to each of the following exogenous changes. a. A change in consumer preferences increases the saving rate. b. A change in weather pattems increases the depreciation rate. c. Better birth-control methods reduce the rate of population growth