Consider the standard Solow model. Suppose the exponent on capital in the CobbDouglas production function, Y: = AKf'Ltl\

Consider the standard Solow model. Suppose the exponent on capital in the Cobb-Douglas production function, Yt KtOLt1 is equal to I. Let the capital accumulation equation be given by AICt+1 = It dlCt, where d is the rate of capital depreciation. Suppose that investment is equal to It SYt, where S is the percentage of output that is invested. Draw the Solow diagram for the case when S > d. What is the steady state value for capital? Now draw a new Solow diagram for the case when S < d. What is the steady state value for capital? Comment on the results.