(d) The growth rate of population drops to 2%. This change will cause the steady state of capital per effective worker to and will cause the growth rate of aggregate capital to Stay the same (e) A large sudden wave of migration drastically increases the number of workers in the economy. Assuming no other cl Increase ters of the model and that the economy starts in its steady state, this will cause output per effective worker to immediately Decrease the long the level before the shock occurred.Assume a Solow model with production function given by Y = AK1/5L1/5. The saving rate in this economy is 15%, the depreciation rate is 5%, population grows 5% each period and technology (A) grows at 4% each period. (a) Capital per effective worker is currently equal to 0.1. Next period, capital per effective worker will ORemain the same ODecrease OIncrease We do not have enough information to decide (b) What is the steady state level of capital per effective worker in this economy? 09 None of these 00.5 Consumption per effective worker will immediately(c) The saving rate increases to 20%. Consumption per effective worker will immediately and over time will Decrease to a lower steady state than the original e the steady state of capi Increase, but to a lower level than the original steady state Decrease, but remain at a higher steady state than the original Increase to a higher steady state than the original r of workers in the econo model and that the economy starts in its steady state, this will cause output per effective work run the level of capital per effective worker will be the level before the shoo Carnival Cruise Lines (An American company) issues $0.8 billion in new stock, all of which is pur(e) A large sudden wave of migration drastically increases the number of workers in the economy. Assuming no other changes in the parameters of the model and that the economy starts in its steady state, this will cause output per effective worker to immediately and in the long run the level of capital per effective worker will be the level before the shock occurred. Lower than Higher than Carnival Cruise Lines (An American company) issue w stock, all of which is purchased by investors this year. Using the newly raised The same as jon (assume the production only uses parts produced in the United States this year and is(d) The growth rate of population drops to 2%, This change will cause the steady state of capital per effective worker to and will cause the growth rate of aggregate capital to (e) A large sudden wave of migration drastical ber of workers in the economy. Assuming no other changes in the parameters of the Decrease model and that the economy starts in its stead Stay the same e output per effective worker to immediately and in the long run the level of capital per effective worker wil Increase the level before the shock occurred.(e) A large sudden wave of migration drastically increases the number of workers in the economy. Assuming no other changes in the parameters of the model and that the economy starts in its steady state, this will cause output per effective worker to immediately and in the long run the level of capital per effective worker will be the level before the shock occurred. Increase Stay the same Decrease(c) The saving rate increases to 20%. Consumption per effective worker will immediately and over time will Consumption per effective worker will not change immediately Decrease the steady state of capital per effect Increase cause the growth rate of aggregate capital to (e) A large sudden wave of migration drastically increases the number of workers in the economy. Assumin model and that the economy starts in its steady state, this will cause output per effective worker to immedi run the level of capital per effective worker will be the level before the shock occurred. Carnival Cruise Lines (An American company) issues $0.8 billion in new stock, all of which is purchased by in