Briefly explain the reason each of the bullet points below for the shock in the saving rate shown in the slide below.

The Solow-Swan Model Shock Analysis Case 1: saving rate s shocked up at t = 0. . At t = 0: 2 . s up, so K* up. . k(t) unchanged (unch). CAE COMPONENTS 0 . Negative gap created. -2 K* . t1/2 unch. 2 0: 35 . k(t) evolves to k*. 30 PER CAPITA INCOME (currency) . Gap relaxes to zero. . gx > 0 and gr/ increased 10 during relaxation. . Long-term gr / unch. -10 10 20 30 40 50 TIME (year) Lecture 6 - Solow-Swan Model II: R. J. Hawkins Econ 100B: Macroeconomics 12/ 16Briefly explain the reason each of the bullet points below for the shock in the saving rate shown on slide 12 of lecture 6. . At t = 0: - s up, so K* up. - k(t) unchanged (unch). - Negative gap created. - t1/2 unch. - Balanced growth up. - Y(t)/ L(t) unch. . For t > 0: - k(t) evolves to k*. - Gap relaxes to zero. - gr = 0 for t 0 for t > 0. - gy/L > gE during relaxation. - Long-term gy/z in unchanged from its value for t