An economy has the following production function Y = K (4/5)[(1/5) Assume the depreciation rate is 8, population growth rate is n, and the saving rate is s. a. Find the Steady State capital per worker, income per worker, and consumption per worker. (Note that these should be functions of 8, n, and s). b. Assume that suddenly an earthquake occurs, which destroys a big portion of the stock of capital per worker. If the economy was on the steady state (as you found in a.) right before the earthquake, use the intuition to explain how the economy will move towards the steady state after the earthquake. That is, show the evolution of capital per worker, income per worker, and consumption per worker towards the steady state. c. Regarding the steady state you found in a., assume the saving rate is s= 0.3 and suddenly (and exogenously) increases to s= 0.5. Show the transition towards the new steady state of consumption per worker. An economy has the following production function Y = K (4/5)[(1/5) Assume the depreciation rate is 8, population growth rate is n, and the saving rate is s. a. Find the Steady State capital per worker, income per worker, and consumption per worker. (Note that these should be functions of 8, n, and s). b. Assume that suddenly an earthquake occurs, which destroys a big portion of the stock of capital per worker. If the economy was on the steady state (as you found in a.) right before the earthquake, use the intuition to explain how the economy will move towards the steady state after the earthquake. That is, show the evolution of capital per worker, income per worker, and consumption per worker towards the steady state. c. Regarding the steady state you found in a., assume the saving rate is s= 0.3 and suddenly (and exogenously) increases to s= 0.5. Show the transition towards the new steady state of consumption per worker