Question 2 Suppose output is produced according to the production function F = HEHI _U}L]1rx where K is capital, L is the labourforce. and u is the natural rate of unemployment. The national sayings rate is s, and the capital depreciation rate is E. {a} Express output per worker (:1: = '1"ij as a function ofcapital per worker (I: 2 EH.) and the natural rate of unemployment in]. {b} Write an equation that describes the steady state of this economy. Show this steady state equilibrium in a diagram like in the standard Solow model. {c} If the government implements a policy that reduces the natural rate of unemployment. using the graph you drew in part {b}. describes how this change affects output both immediately and overtime. Is the steady-state effect on output larger or smaller than the immediate effect? Explain