Problem 2 (10 points). Suppose that Lalaland is a closed economy on balanced growth path.) whose out-put in each year tis given as Y: = K? (LtEt)la: where Kt is the capital stock; Lt is the size of the labor force, and Bi is the efciency of labor. Then LgEt is the size of the effective labor force. T he constant a is between 0 and 1. Suppose that the people in this economy saves a constant fraction 3 of their income every year. The constant 3 is smaller than CE. Suppose also that a constant fraction (5 of existing capital stock gets depreciated away every year. hloreover; the labor force and the efficiency of labor grows at a constant rate R and 9 every year. (a) \"That is the growth rate of output per effective worker? TWhat is the growth rat-e of output per worker? 1What is the growth rate of total output? (b) 1What is the effect of a onetime increase in the saving rat-e s to or on the output.) consumption, and investment in this economy over time? (c) 1iCir-That is the effect of a onetime increase in the growth rate of the labor efficiency 9 on the output? consumption? and investment in this economy over time