7. Suppose that the Martian kingdom of Helium is described by a Romer model and is on its balanced growth path. The kingdom wins a war against its rival, Zodanga, and takes most of their capital as plunder. (These kingdoms are from the Disney movie John Carter which was one of the biggest economic disasters in Hollywood history but is actually a good movie.)

What are the resulting comparative dynamics for GDP per worker in Helium?

a. y decreases immediately but grows at a faster rate

b. y increases immediately and grows at a faster rate

c. y decreases immediately then grows at the same rate as before

d. y increases immediately then grows at the same rate as before