1. Using the solow growth model, given y(K) = k^0.4, S=0.20,depreciation rate=0.04 and n=1%, a. What is the steady-state level of capital per worker? b. What is the steady-state of output per worker? c. What is the steady-state level of consumption per worker? 2. Now assume population growth is instead-0.5% (approximatelythe growth rate when every couple has 1.7 children), but that allother parameters stay the same. a. What is the new steady-state output per worker? Is it higheror lower than with faster population growth? b. What is the new steady- state of consumption per worker? Isit higher or lower than with faster population growth? . . . .