Question: 3. Solow Model in per worker terms: Rewrite and solve the Solow Model in per worker terms (i.e. calculate steady state k* rather than K*).

3. Solow Model in per worker terms: Rewrite and solve the Solow Model in per worker terms (i.e. calculate steady state k* rather than K*). Also show the solution clearly in a diagram using k and not K in the horizontal axis. With the help of the diagram, explain what happens to an economy immediately after the following incidents (and its subsequent movement to a new /old steady state) (a) An earthquake destroys 75% of the capital stock and 25% of the Labor. (b) An earthquake destroys 25% of the capital stock and 75% of the labor

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