In the Solow growth model, suppose that increases permanently at time 5 (capital deepening). Assume that sA>1. - Analytically investigate what happens to (1) capital, (2) investment, (3) output, (4) rental price of capital, and (5) real wages at the new steady state. Are they higher or lower at the new steady state than at the old steady state? - Analyze the dynamic effects of this permanent capital deepening on capital using the Solow diagram. - Based on the Solow diagram analysis, plot the IRFs of (1) capital, (2) investment, (3) output, (4) rental price of capital, and (5) real wages. In the Solow growth model, suppose that increases permanently at time 5 (capital deepening). Assume that sA>1. - Analytically investigate what happens to (1) capital, (2) investment, (3) output, (4) rental price of capital, and (5) real wages at the new steady state. Are they higher or lower at the new steady state than at the old steady state? - Analyze the dynamic effects of this permanent capital deepening on capital using the Solow diagram. - Based on the Solow diagram analysis, plot the IRFs of (1) capital, (2) investment, (3) output, (4) rental price of capital, and (5) real wages