3. This question asks you to numerically solve the Solow model with exogenous growth in TFP: At+1=(1+)At Assume the following parameter values for the Solow model: =0.33,=0.08,s=0.2, =0.014,A0=K0=L=1. Practical details: You may use Microsoft Excel or any other programming language of your choice to compute the model. Only turn in the specific visualizations requested in each answer (not the underlying data). All graphs should be easy to read without zooming, and please label all axes and lines appropriately. (a) Plot the time-path of aggregate capital Kt and aggregate output Yt over the first 100 periods. Describe your findings in 2-3 sentences. (b) Plot the time-path of scaled capital k~t and scaled output y~t over the first 100 periods, where k~tKt/XtXtAt11L Describe your findings in 2-3 sentences. (c) Now assume a higher savings rate of s=0.3. Plot the time-path of scaled capital k~t and scaled output y~t over the first 100 periods, both for the original savings rate of s=0.2 and the new higher savings rate of s=0.3 (both curves should be plotted on the same graph). Describe your findings in 2-3 sentences. In particular, how does the savings rate affect the time-path of scaled capital and output in the short run and in the long run? 3. This question asks you to numerically solve the Solow model with exogenous growth in TFP: At+1=(1+)At Assume the following parameter values for the Solow model: =0.33,=0.08,s=0.2, =0.014,A0=K0=L=1. Practical details: You may use Microsoft Excel or any other programming language of your choice to compute the model. Only turn in the specific visualizations requested in each answer (not the underlying data). All graphs should be easy to read without zooming, and please label all axes and lines appropriately. (a) Plot the time-path of aggregate capital Kt and aggregate output Yt over the first 100 periods. Describe your findings in 2-3 sentences. (b) Plot the time-path of scaled capital k~t and scaled output y~t over the first 100 periods, where k~tKt/XtXtAt11L Describe your findings in 2-3 sentences. (c) Now assume a higher savings rate of s=0.3. Plot the time-path of scaled capital k~t and scaled output y~t over the first 100 periods, both for the original savings rate of s=0.2 and the new higher savings rate of s=0.3 (both curves should be plotted on the same graph). Describe your findings in 2-3 sentences. In particular, how does the savings rate affect the time-path of scaled capital and output in the short run and in the long run