Suppose the economy of an island behaves as the Solow model, version 1.0 (constant population). The production function is Cobb-Douglas (with constant returns to scale) and the exponent on capital is 0.4. Further, the productivity parameter is 50 (A), the depreciation rate is 10% (d), the savings (investment) rate is 20% (s), and the labor force (L) is equal to 50 million (and constant over time). Suppose in year 2020 the economy is in a steady state. Compute the 2020 values for income per worker (Y/L) and the wage (w). Recall that the wage is given by the MPL. Pick the best choice from the options below. Per-worker income is higher than 900 and lower than 1,150. The wage is between 610 and 660. Per-worker income is higher than 330 and lower than 500. The wage is between 220 and 350. Per-worker income is higher than 550 and lower than 820. The wage is between 420 and 490. Per-worker income is higher than 520 and lower than 610. The wage coincides with per-worker income. Clear selection Compute the 2020 values for consumption per worker (C/L). Recall that households save a constant fraction of their income. Pick the best choice from the options below. Consumption per worker is between 700 and 800. Consumption per worker is between 800 and 900. None of the above. Consumption per worker is between 600 and 700. Clear selection A breakthrough in artificial intelligence increases the efficiency of technology by 10 percent. As a result, the productivity parameter (A) increases to 55. What will be the new steady-state wage? Between 600 and 700. Between 700 and 800. None of the other options. Between 400 and 500. Between 500 and 600. PAGE 2. Draw the Solow diagram to represent the initial steady state and the final steady state capital stock (after the technology breakthrough). Label the initial point A and the final point B. Take a picture of your work and upload it