6. [5 points] Consider the Solow Growth Model when answering the questions below. Suppose that output is produced using y=k", the population growth rate=0.01 (1%), depreciation rate=0.04 (4%), and the savings rate =0.1 (10%). Solve for the steady state level of k* Solve for the steady state level of y*, c*, and savings-per-worker at steady state. Suppose that the total factor productivity (TFP) rises so that the new production function is y=10k. All other values remain the same. Solve for the new k*, y*, c*, and savings-per-worker at steady state. 7. [6 points] Consider the Solow Growth Model when answering the questions below. a. What is the condition that must hold at steady state to obtain k*? hint: this is the condition that is used to solve for k*; do not write out an equation for k*. Write down the condition (as an equation) and then briefly explain what the condition means. b. Draw the diagram showing k* (ie. the optimal capital-labor ratio) along with the condition. Label everything. c. Draw a diagram that relates capital-labor ratio to consumption per worker at steady state (hint: c is on the axis). On your diagram show ke and the consumption that is associated with ke. d. Show the impact of a rise in n on the steady state of capital-labor ratio. Carefully draw and label the diagram. Clearly STATE the impact on k*, c*, and y*. e. Discuss the impact of the rise in n on k*. Provide intuition