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How do I demonstrate this graphically? On A Ramsay Caas Koopmans model Consider an economy that follows the Ramsey Cass Koopmans model (with constant technology

How do I demonstrate this graphically? On A Ramsay Caas Koopmans model

Consider an economy that follows the Ramsey Cass Koopmans model (with constant technology A and population P) and is in the balanced growth path. At t0, the participation rate permanently decreases, that is, a smaller fraction of the population works. What are the dynamics of consumption?

a. c slowly increases, then starts to decrease again to the steady state.

b. c jumps up at t0, then gradually decreases towards the steady state

c. None of the other answers is correct.

d. c jumps down at t0, then slowly increases to the steady state.

e. c stays constant

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