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Graphically show the effects in the increased savings rate using the solo growth model (label everything)

Graphically show the effects in the increased savings rate using the solo growth model (label everything)
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Answer #1

Solo Growth Model (Normal)

Production per effective worker can also be called as Output per worker

Now when the savings rate is increased then

In the above the Capital per effective worker has been increased from left to right as initial value of saving which is S0 which is lesser than S1  (S0<S1) The new saving line will shift up slightly higher and towards right, and apart from that nothing will change neither break even investment nor output per worker.

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