5. Consider the Solow model. Suppose that someone invents a miracle coating that, when sprayed on metal equipment, radically reduces the amount of wear and tear on machinery. Assume, for simplicity, that there is no population growth and no technological progress. a. Explain using words and graphs what effect this one-time event will have on the steady-state levels of capital per worker, output per worker, and consumption per worker? b. Assume that the economy was at a steady state before this innovation. Sketch the paths of investment, consumption, and output per worker over time as the economy moves to its new steady state. (See Figures 7-9 and 7-10 for examples) c. Draw a graph showing the effect this event will have on the Golden Rule level of capital per worker. (This will start as something like Figure 78, but then there will be a change to it that you have to determine.) 5. Consider the Solow model. Suppose that someone invents a miracle coating that, when sprayed on metal equipment, radically reduces the amount of wear and tear on machinery. Assume, for simplicity, that there is no population growth and no technological progress. a. Explain using words and graphs what effect this one-time event will have on the steady-state levels of capital per worker, output per worker, and consumption per worker? b. Assume that the economy was at a steady state before this innovation. Sketch the paths of investment, consumption, and output per worker over time as the economy moves to its new steady state. (See Figures 7-9 and 7-10 for examples) c. Draw a graph showing the effect this event will have on the Golden Rule level of capital per worker. (This will start as something like Figure 78, but then there will be a change to it that you have to determine.)