I)SOLOW MODEL Increase in Productivity(A). Although not required, you might want to sketch on the diagram below to aid in your answers to the questions here. output, Investment and depreciation k' capltal-labor ratio, In kl: Question 1) Suppose that productivity(A) increase in the Solow Model shown above, how does it affect the steady values of capital per labok\") and output per label-(w)? Please explain how it affects the curves in the Solow diagram above. Also explain how 16" and y\" changes om the time of productivity increase and onwards. 2) SAVINGS AND INVESTMENT Here we have the domestic economy being a Large Open Economy as we discusses in class. Although not required, you might want to sketch on the diagram below to aid in your answers to the questions here. Question A) Here the large open economy initially has NXd = 0. domestic economy rest of the world Sd Srow rw Id Irow S,I S,I Suppose the economy was at r"E, and then autonomous consumption increases in the domestic economy. What would be the effect? Specifically, what is the impact on the world interest rate, savings (domestic and rest of the world), investment (domestic and rest of the world), and NX(domestic and rest of the world)?Question B) Here the large open economy has WKct NOT equals to 0. domestic economy rest of the world 5 d STOW IT'OW S,| 5,! Based on the diagram shown in this question B, is the domestic economy a net exporter or net importer of goods and services? Also is the real interest rate of the domestic economy in this question B higher or lower than the real interest rate of the domestic economy if it is a closed economy? Please explain