I need Question 2 thanks.

A country's autocratic regime diverts resources to terribly unproductive uses but they have a large population that is relatively well educated and potentially could be quite productive. Suppose the people of this country save 20% of their income and every period 8% of their capital depreciates. Their production function follows a Cobb-Douglas form Y=F(K,L)=AKL1 where =0.25 and A=1. Of course, this means that the per worker output function is f(k)=Ak. 1. What is the steady state capital stock per worker? For this, 2. Because of both politically-motivated resource diversions and the effects of an international embargo, the capital stock in this country is not at its long-run steady state: Today it is 20% lower than its steady state. Tomorrow, the leader decides to step down and empower his distant cousin Bruce, who's been living in the US for years, has good buddies throughout the government and believes firmly in liberalizing the financial system to allow market-driven investments. All of the distortions evaporate and the Americans lift their embargo in a big Rose Garden celebration with cigars and Budweiser. (a) How much additional capital per worker will be added (the investment) in the first period of transition? How much will depreciate? That is to say, call kL80% of steady state you just computed, what is sf(kL) and what is kL. (b) What will be the capital stock per worker next period? This should be k1=kL+sf(kL)kL. (c) How much will consumption grow in the first period of the transition? This is to say, consumption in the low state is cL=(1s)f(kL) and in the next it's c1=(1s)f(k1) (d) In how many periods will they reach the steady state? What will be capital per worker in 5 periods? (Note: part of this is a trick question) A country's autocratic regime diverts resources to terribly unproductive uses but they have a large population that is relatively well educated and potentially could be quite productive. Suppose the people of this country save 20% of their income and every period 8% of their capital depreciates. Their production function follows a Cobb-Douglas form Y=F(K,L)=AKL1 where =0.25 and A=1. Of course, this means that the per worker output function is f(k)=Ak. 1. What is the steady state capital stock per worker? For this, 2. Because of both politically-motivated resource diversions and the effects of an international embargo, the capital stock in this country is not at its long-run steady state: Today it is 20% lower than its steady state. Tomorrow, the leader decides to step down and empower his distant cousin Bruce, who's been living in the US for years, has good buddies throughout the government and believes firmly in liberalizing the financial system to allow market-driven investments. All of the distortions evaporate and the Americans lift their embargo in a big Rose Garden celebration with cigars and Budweiser. (a) How much additional capital per worker will be added (the investment) in the first period of transition? How much will depreciate? That is to say, call kL80% of steady state you just computed, what is sf(kL) and what is kL. (b) What will be the capital stock per worker next period? This should be k1=kL+sf(kL)kL. (c) How much will consumption grow in the first period of the transition? This is to say, consumption in the low state is cL=(1s)f(kL) and in the next it's c1=(1s)f(k1) (d) In how many periods will they reach the steady state? What will be capital per worker in 5 periods? (Note: part of this is a trick question)