Question 24 (10 points) Introduce government activity in the endogenous growth model as follows. In addition to working u units of time in producing goods, the representative consumer works vunits of time for the government and produces gv/ goods for government use in the current period, where g > 0. The consumer now spends 1 - u - v units of time each period accumulating human capital. Suppose that vincreases with u held constant. Then, the followings are experienced: (Draw a diagram in Assessment-Assignment-Final Exam showing the initial path followed by the natural logarithm of consumption and the corresponding path after v increases). ( a) The growth rate of human capital increases, the level of consumption falls, the growth rate of consumption increases (b) The growth rate of human capital decreases, the level of consumption stays constant, the growth rate of consumption stays constant ( c) The growth rate of human capital decreases, the level of consumption falls, the growth rate of consumption decreases ( d) The growth rate of human capital increases, the level of consumption increases, the growth rate of consumption stays constant O e) None of the above