Consider the Solow model with population growth, as presented in the text. Assume that population can grow at two different rates n1 and n2, where n1 7 n2. The population growth rate depends on the level of output per capita (and therefore the level of capital per capita). Specifically, population grows at rate n1 when k 6 k and slows down to rate n2 when k Ú k.

Draw a diagram for this model.

Assume that (n1 + d)k 7 gf(k) and that

(n2 + d)k 6 gf(k). Explain what the diagram says about the steady state of the model.