a.Assume the economy was in a steady state before the COVID-19, the saving rate and population rate are the same as were before. What is the immediate impact of COVID-19 on total output and on output per worker?

b.Consider an economy described by the production function Y = F(K, L) = K0.5L0.5.

i.Derive the per-worker production function.

ii.Assuming no population growth or technological progress, find the steady-state capital stock per worker, output per worker, and consumption per worker as a function of the saving rate and depreciation rate.