3) Copy your graph from 2}. Recall that the Solow production function is Y=F(A,K,L), where A stands for productivity. Suppose that in this economy the government, rms, and private individuals increase their investment into researchr'ideas. They build industry labs, improve universities, etc. The growth in A improves and hence the Solow growth rate increases to 5%. a) Illustrate what changes. Label the rate of ination and discuss briey why it changes. b) Your roommatewho does not do economiessays: \"3% vs. 5% growth? Who cares. Could you study anything less important?\" Suppose each of you is born in 2000 and lives 80 years. Use excel to create a table like the below, into the year 2080. The last two columns compare output per capita in two economies, where one grows at 3% and one at 5% (we abstract from population growth, for simplicity). What is the output per capita in each, by 2080? Does increasing the Solow growth rate from 3 to 5% seem like a major achievement? Output Y with Output Y with a growth rate a growth rate Year of 3% of 5% 2000 1,000 1,000 2001 1,030 1,050 2002 [,061 1,103