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In the December 21, 2004 edition of the Boston Globe, Cathy Minehan, President of the Federal Reserve Bank of Boston, is quoted as saying: My Productivity is the only way that economies grow over time. The fact that underlying [annual] productivity growth [has] changed from something like 1 percent (in the 1980s) to something like 2 1/4 to 2 1/2 percent (since 1995) means that we are able to double our standards of living in about half the time. a) (16 pts.) Consider an economy whose long-run behavior is described by the Solow model. Show graphically the steady state per-worker values of capital (k"), output (y"). investment (i*) and consumption (c*) both before and after a permanent increase in productivity. Does steady state consumption increase or decrease? A detailed explanation is not necessary, but label the graph clearly b) (5 pts.) Why does Ms. Minehan say that productivity is the only way that economies grow-in a long-term sustained fashion-over time? In other words, why can't improvements in savings or population growth rates generate sustained growth as well? Basing your answer on the Solow model, briefly explain. c) (5 pts.) Do changes in savings or population growth rates have long-term growth effects in endogenous growth models? If yes, how? If no, why