8. Luddites was a name given to a group of skilled tex- tile workers (known as croppers) who, in the early 1800s in England, would break into textile mills and smash the new mechanized textile looms they feared would put them out of work. Since that time, the term Luddites has often been applied to any group that tries to halt technological advances. Using the neo- classical growth model, show the effect of a techno- logical advance that increases productivity.

a. Show how the technological advance affects living standards both immediately and after the econ- omy adjusts to a new steady state.

b. How can the concerns of the Luddites be repre- sented in a diagram?

c. During the adjustment to the new steady state, is the rate of growth in output greater than, less than, or equal to the rate of growth experienced in the steady state? Explain.