Essay Questions: Please answer BOTH of the following essay questions. 1 . (25 points) Imagine that one of the longrun effects of the wars currently going on around the world is to make people more conservative such that their savings rates increase. A. Using the Solow model, describe what the short and longrun impacts of this change are? Does consumption go up or down in the short and longruns? What happens to the capital stock per person? What happens to the growth rate of output per capita in the short and long runs? B. Now assume that an additional effect of these wars is that the popu lation growth rate also increases. How does this impact your previous answer? 2. (25 points) Imagine that the world is now described by the Malthusian Model. A. What are the assumptions that make the world Malthusian (rather than being described by the Solow Model)? B. What is the effect of a pandemic, such as the Black Death or COVID 19, in the short and longruns in the Malthusian model? Assume the diseases do not permanently impact healthithey just kill a bunch of people quickly and the survivors are left the same as before C. Now assume that, similar to Question 1, the fertility rate increases as a result of the pandemic. How does this change your answer to part B