Suppose you are an economist at the African division of the World Bank, and you and your group are currently worried about the case of Nigeria. You want to convince the board to provide financial aid to the country. a) First, you need to make a strong case that Nigeria needs help. Using data on Constant GDP per capita for Nigeria and Botswana between 1960 and 2019, plot a graph to compare the growth of these two economies. What do you see? Which country was richer in 1960? Which country was richer in 2019? Which country grew faster since 1960? b) Now you need to argue that international aid will help. Assume that the income transferred to Nigeria will increase the disposable income of the population such that consumption will be = (1 )( + ), where is the international aid. Assume that the rest of the economy is identical to the one we studied in week 5. i. Find an equation that relates capital per capita in the future with capital per capita today . Denote international aid per capita by = . ii. Find an equation that represents a steady-state condition. iii. In a graph with capital per capita in the steady-state in the x-axis and investment per capita and depreciation per capita in the y-axis, draw the investment per capita curve and two depreciation per capita curves: one with no aid ( = 0) and one with aid ( > 0). iv. In the graph, identify both stocks of capital per capita in the steady-state. What is the conclusion? Will international aid increase the standards of living in Nigeria? Will it increase the long-run growth rates of the country? Before the big presentation, you show your arguments to your supervisor, William E. He congratulates you on your data-driven motivation and your rigorous analysis. He is just worried about one detail: "The last time we provided international aid to an African country, the president in the office used the resources to finance a war against revolutionary groups. It led to a civil war and massive destruction of the total stock of capital." c) Use the graph produced in item b-iii (with only the depreciation per capita in the case where = 0) to show the effect of a decrease in total capital stock on the standards of living in the long run. If that is the case, do you have a strong case in favor of international aid?