A. A capitalists' demand for labor in a Lewis economy is given by W = K - bL where W is the wage, K is the capital stock and L is the number of workers hired. The parameter b reflects the slope of the linear labor demand function. Capitalists save (epsilon) part of their income in every period - which adds to the capital stock, K. There is no depreciation. Does this economy generate a Kuznets-type inverse-U measure of inequality? Demonstrate. B. A Solow economy is given by Y = AKa 1@ where Y is the GDP, A is an efficiency parameter, K is capital, L is labor, ais a parameter. There is depreciation but no population growth or labor productivity growth. Does this economy generate a Kuznets-type inverse-U measure of inequality? Demonstrate. C. Consider a Piketty economy where GDP grows at g% and the return on capital is r%. Initially, the capital stock is 5000 and the GDP is 1250. Create a spreadsheet to demonstrate two scenarios: one where r is barely above g, and the other where ris significantly above g. There is no depreciation. Does this economy generate a Kuznets-type inverse-U measure of inequality? Demonstrate. What happens to the capital output ratios in these two economies? Comment on the behaviors of the capital output ratios