G G G 1. Consider the Solow growth model as presented in class. How would the steady state capital per worker change as: a. The savings rate decreases. b. The technology level decreases. c. The population growth rate increases. d. The capital depreciation rate increases. e. The current labor force increases. a. A lower savings rate would decrease the amount of income invested, so the steady state capital per worker would also decrease. b. A lower technology level means each worker produces less income. Assuming the savings rate is held constant, less income is invested, so steady state capital per worker decreases. I c. As the population growth rate increases, more capital is needed for new workers, so the steady state capital per worker decreases. d. As the depreciation rate increases, capital per worker decreases. e. If the current labor force increases, current capital per worker decreases, but steady state capital per worker doesn't change