Q3 (20 points) A country produces according to the Cobb-Douglas production function Y = 103 10.7 The supply of labor is fixed at L = 100, the depreciation rate is 0.05, and the savings rate is 0.2. (a) (5 points) Assuming that the capital stock is fixed at its steady-state value of K = 725, what are the equilibrium rental prices of capital (r) and labor (w)? (b) (5 points) Now suppose that unexpectedly 25% of people die so that labor supply falls to L = 75. What happens with the rental prices of capital and labor in the first periods after the death? Explain what you find