(2} [28 points] Below-Swan Growth Theory Case I: Foreign Aid Consider a BelowSwan economy without technological progress that begins with a steady state, k3. To its pleasant surprise, the economy receives a onetime generous gift of foreign aid in the form of capital {electric power plants, machine tools, etc). Assume that physical capital depreciates at rate 6 :a- D and population growth rate is n :3 D. {a} [8 points] Use the BelowSm diagram to explain what happens to the economy, both im mediately and over time. That is, {i} What will be immediate impact on real GDP {Y} and real GDP per person [3,: E YKL}? Uluetrate graphically. {ii} 1What will happen to capital per worker [in E KfL} over time? {1:} [l5 points] Based on your answer to part [a] above, does foreign aid exert a longrun effect on the welfare of poor countries? Explain in some detail