Consider an economy with technological progress but without population growth that is on its balanced growth path. Now suppose there is a one-time jump in the number of workers.

(a) At the time of the jump, does output per unit of effective labor rise, fall, or stay the same? Why?

(b) After the initial change (if any) in output per unit of effective labor when the new workers appear, is there any further change in output per unit of effective labor? If so, does it rise or fall? Why?

(c) Once the economy has again reached a balanced growth path, is output per unit of effective labor higher, lower, or the same as it was before the new workers appeared? Why?