Consider the Industrial Revolution and the demographic transition.

1. a. If the population had not changed, how would the Industrial Revolution have been represented in the Solow growth model? What would have been the consequences of the Industrial Revolution for the steady state

b. According to Lee in "The demographic transition: Three centuries of fundamental change", what happened to the working age population during the Industrial Revolution? Intuitively, how would this have altered the steady state of the economy?

C. In some developed economies, such as Japan and now South Korea, the working age population is shrinking. How will this affect the steady state in these economies?