Initially, the economy is in its steady state. The economy experiences a technological breakthrough such that the level of total factor productivity increases by 5%. a) b) In the context of the long-run classical model, what happens to the long-run equilibrium levels of investment and real interest rate? What happens to the real wage? Explain and support your answer with ONE loanable funds market diagram. (10 points) According to the Solow Model, what happens to the steady-state capital-labour ratio? In the new steady state what happens to the growth rate of output per worker? Explain and support your answer with ONE appropriate diagram. Be sure to explain what happens to the variables of interest during transition to steady state. (15 points)