I would like to know the answers for the following questions

6. (3 poin'lstotal, :I. point each) (From Spring 2019 midterm) Suppose there are 2 groups of households Group :I. are workers Group 2 own the capital I receive all income from labor I receive all income From capital I aggregate income = Y, I aggregate income = Y, I are low-income households I are high-income households I have low household saving rate, sL I have high household saving rate, 5K The eco nomy-wide household saving rate will then be a weighted average of the two saving rates with weights equal to their share of total income. That is, S" (1', \"'1', 1* =54 r]\"'l') Suppose that income is distributed unevenly: when income rises, most of the increase in income goes to the high-income households who own the capital and verylittle goes to the low-income households who are the workers. Suppose g=o; that is, there is no ongoing growth in efficiency (E) over time. Su u ose there is a one time increase in E. A. Over time, what will happen to the overall saving rate? Why? B. Over time, what will happen to the average standard of living in this economy? Why? C. Over time, what will happen to the level of inequality in this economy? Why? 7. (2 poinis total; 1 point each) I" K a Start from the Cobb-Douglas production function E - EM\"i . In our usual formulation, E is exogenous. A. In general, what does it mean for a variable to be exogenous? In this specic example, what does it mean for E to be exogenous? B. Suppose instead that E is endogenous, with its value increasing as K,-'L increases. Suppose there is an increase in the saving rate. Would an economy in which E is endogenous and increases as KJL increases grow at the same pace, faster, or slower, than an economy in which E is exogenously determined? Explain. Note: Even though this PS did not ask you to draw graphs, you need to be able to draw them. Look at old midterm exams on the website. You will need to be able to draw the graphs we are drawing in class