In the Solow model, suppose that there is a permanent increase in productivity ("A") at time 1. - Analytically investigate what happens to (1) capital, (2) investment, (3) rental price of capital, and (4) 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 dynamics effects of this permanent increase in productivity using the Solow diagram. - Draw the evolution over time of (1) capital, (2) investment, (3) rental price of capital, and (4) real wages, based on your analysis of the Solow diagram. In the Solow model, suppose that there is a permanent increase in productivity ("A") at time 1. - Analytically investigate what happens to (1) capital, (2) investment, (3) rental price of capital, and (4) 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 dynamics effects of this permanent increase in productivity using the Solow diagram. - Draw the evolution over time of (1) capital, (2) investment, (3) rental price of capital, and (4) real wages, based on your analysis of the Solow diagram