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Suppose that the Fire Nation invades the Earth Kingdom and re bombs the ancient city of Omashu (and then promptly renaming it New Ozail. The
Suppose that the Fire Nation invades the Earth Kingdom and re bombs the ancient city of Omashu (and then promptly renaming it New Ozail. The new overall output function for The Earth Kingdom is now: YlAFNA = v K Where 1AFNA = "1 Year After Fire Nation Attacks" Question 5 2 pts Calculate the new steady state level of capital Question 6 2 pts Calculate the new steady state level of output Question 7 2 pts Calculate the GDP growth rate between 1BFNA output and 1AFNA output: Your answer should be in percent (do not include % symbol). If it is negative, include negative sign.Question 8 2 pts Suppose instead that the King asked you what next year's output will be if this year's capital stock is K=25. Assume that this year 1 AFNA (so be sure to use the correct production function}. (Hint: Use the law of motion of capital to calculate capital tomorrow and then use that capital to get output tomorrow}
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