2. Consider the version of the Solow model discussed in Lectures #1 and #2 with a general production function that exhibits constant-returns- to-scale in capital and effective labor. Suppose that the growth rate of the labor force increases permanently from no to ny. (a) Draw the actual investment curve and the break-even investment line with the original and the new n. How does &* change between the initial BGP and the new one? (b) Suppose that the economy is at its original BGP where the growth rate of the labor force is no. Let to denote the period when n in- creases permanently to level my and ty denote the period in which the economy converges to the new BGP. Plot the following figures one below the other in sequence: (i) First, plot the growth rate of the labor force n against time de- noted by t. (ii) Next, plot the rate of change of capital in units of effect labor k against time. (iii) Finally, plot capital in units of effective labor k against time.(c) Plot the growth rate of output per worker against time and then In (Y/L) against time. What can you conclude about the level and growth effects on Y/ L caused by the increase in n