Draw a well-labeled graph that illustrates the steady state of the Solow model with population growth. Use the graph to find what happens to steady-state capital per worker and income per worker in response to each of the following exogenous changes.
a) A change in consumer preferences increases the saving rate
b) A change in weather patterns increases the depreciation rate
c) Better birth-control methods reduce the rate of population growth
d) A one-time, permanent improvement in technology increases the amount of output that can be produced from any given amount of capital and labor.