Suppose that the economy is well described by the augmented Solow model. Assume F(K4, Z+N+) = A+K; (24N+)?-. Also, assume that 24 and N4 grow at a rate equal to z and n, respectively. The transitional dynamics equation, in terms of efficiency units (t = Zn,), is . 1 kt+1 sAck (1+2)(1 + n) [SA_ + (1 - 0)]. (c) (7 marks) Suppose that the economy reached its steady state again. Describe and explain the evolution of k, y,c,i, r and w after an unexpected and permanent increase in the growth rate of labour augmenting productivity z. Suppose that the economy is well described by the augmented Solow model. Assume F(K4, Z+N+) = A+K; (24N+)?-. Also, assume that 24 and N4 grow at a rate equal to z and n, respectively. The transitional dynamics equation, in terms of efficiency units (t = Zn,), is . 1 kt+1 sAck (1+2)(1 + n) [SA_ + (1 - 0)]. (c) (7 marks) Suppose that the economy reached its steady state again. Describe and explain the evolution of k, y,c,i, r and w after an unexpected and permanent increase in the growth rate of labour augmenting productivity z