(c) What happens to steady state output and consumption after a positive productivity shock? Justify your response. (d) If the real wage equals the marginal product of labor, what is the growth rate of the real wage in steady state? Problem 9: Which of the following statements about the role of institutions in economic growth is TRUE and which of the following statements is FALSE? Explain. (a) Higher expropriation risk due to lowquality governance and poor insti tutions might account for low levels of human and public capital in poor nations (b) The quality of institutions in countries colonized by Europeans is corre lated with whether climate/ disease allowed European settlers to live in those areas (0) Lowquality institutions make it difcult to protect property rights and enforce contracts (d) Lowquality institutions are central to the theory of poverty traps that states that countries need a 'big push' to facilitate convergence in living standards to the developed world