4. Consider an economy that can be described by the Malthusian model. Suppose that the production function is such that MPL relates to the size of population via the following equation: MPL =. where A is the productivity and L is the labor force (population). Assume that A = 1,000. Also, assume that the "subsistence" level of consumption in this economy changes with the size of the population. The larger the country gets, the higher the minimum level of consumption people require to be happy. That is, 0 = 2 if LS 400 if L > 400 a. Depict this economy graphically in the w-L space. b. Explain your graph. Are there any steady states in this economy? If yes, comment on their (local) stability. What population size and the real wage will you predict for this economy in the long run