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pls provide detailed answers thank you 3. Assume Cobb-Douglas production function. Capital share is a. Consider an economy that is in the steady state of

pls provide detailed answers thank you

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3. Assume Cobb-Douglas production function. Capital share is a. Consider an economy that is in the steady state of the Solow model. Explain the transition dynamics according to the Solow model: (a) An earthquake suddenly destroys half of the capital stock but leaves the economy otherwise unchanged. i. What is the immediate impact on total output? ii. What is the immediate impact on output per person? iii. What happens to output per worker in the longer-run? (b) An epidemic suddenly kills 10% of the labor force but leaves the economy otherwise unchanged. i. What is the immediate impact on total output? ii. What is the immediate impact on output per person? iii. What happens to output per worker in the longer-run

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