In the Solow model v.2, we relax the assumption of no population growth, so it is natural to inquire if this updated model can explain cross-country differences in average incomes better than the previous version could. To do so, we can construct a new figure akin to that from part (a) but, this time, let us predict the output ratios while allowing countries to differ not only in their investment rates but also in their population growth rates. We will however continue to assume that countries identical in all other respects (including the Cobb-Douglas production function, productivity level and the depreciation rate) and that all countries are in their steady states. b. Show that, in this case, the predicted steady-state output ratio for each country i is given by yi B +81 Bus [mus + 11 a/(1-a) I would like to see a detailed, step-by-step derivation. c. Now, plot a scatterplot of actual y/yus ratios observed in the data against the predicted y/yas ratios computed using the formula in part (b). Use a = and set the depreciate rate to 10% for all countries. Also add a 45 line to your graph. - Contrasting the plots from parts (a) and (c), does the Solow model v.2 appear to have more explanatory power? Explain