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# 5. Draw a well-labeled graph that illustrates the steady state of the Solow model with population...

###### Question:

5. 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 patterns increases the depreciation rate. c. Better birth-control methods reduce the rate of population growth
d. A one-time, permanent improvement in tech- nology increases the amount of output that can be produced from any given amount of capital and labor.

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