Let's evaluate the effects of the introduction of a "one-child" policy in a Solow economy, modeled as a one-time permanent decrease in the rate of population growth,.

a)Draw the evolution of the (log of) population through time (make sure to include some periods before the shock, the moment of the shock, and some periods after the shock).

b)Use the phase diagram to illustrate the adjustment of the economy. Discuss the forces at work along the transition.

c)Draw the evolution of capital per worker, wages, the real interest rate and aggregate output (make sure to include some periods before the shock, the moment of the shock, and some periods after the shock).