Many demographers predict that Canada will have zero population growth in the coming decades, in contrast to the historical average population growth of about 1% per year.

a.Use the Solow model to show the effect of this slowdown in population growth graphically.

To manipulate the diagrams below, click on the endpoint of the curve you wish to pivot and place the endpoint in its proper location.

(8 + n)k Investment, Break-Even Investment sf(k) Capital per workerCapital per worker b. The slowdown in population growth will the growth of total output and the growth decrease of output per worker. speed uP increase slow down c. Ultimately, the economy will reach a new steady state, and total output will be , and the growth rate of output per worker will be zero negative positive