2. What are predictions about the evolution of per-capita variables (k, y, c, i) and input prices (w,r) in the basic Solow model when the economy is hit by a positive shock to technology A (assume Cobb-Douglas production function and the economy is initially at the steady state)? A. At the time of the shock, k, y, c, i, w, and r increase and then smoothly converge to the new higher steady state level. B. At the time of the shock, k, y, i, and w increase, while c and r decrease. They then converge to the new steady state with higher k, y,i", w, and lower c'andr. C. At the time of the shock i, c, y, w, and r increase. In the next period, k, i, c, y, and w increase smoothly until they converge to a new higher equilibrium. In the next period, r starts to decrease and it converges to initial long-run level. D. At the time of the shock i and cincrease. In the next period, i, c, k, y, r, and w start to increase. Then, all variables converge to the new steady state with higher it, c', k', y, w and r