This question asks you how an increase in productivity would change the steady state in a Solow model for education.
a) Draw and label the graph.
b) Now suppose that the country becomes more productive (better laws, new technologies, etc.). What curve or curves does this shift?
c) Show change graphically.
d) Tell me what happens to h, y: is the level of h and y higher or lower? Do h and y show positive or negative growth? is this growth temporary or permanent?